Weekly Markets Monitor: Liberation Day & Stagflation
31 March, 2025
Highlights
- Markets focused on trade tensions last week, as a new 25% US auto import tariff and upcoming retaliatory tariffs weighed on sentiment. Stagflation worries added to the pressure. US, Japan and UK data surprises are in stagflation territory
- Global stocks fell this week, erasing earlier gains, after the US announced new tariffs. US Treasury yields held steady, while the dollar slipped on growth concerns ahead of April 2 tariff plans. Oil rose over supply fears linked to US tensions with Venezuela and Iran
- Gold (XAU) rose above $3,100/oz in Asian trading Monday, maintaining its strong upward trend despite overbought signals
- Stagflation fears abound on higher core PCE inflation and lower spending and consumer confidence, pushing stocks down and gold up – as we have seen in the past.
Chart of the week – Stagflation signs clearer
Source: Bloomberg, World Gold Council
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