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Markets Update: Global stock index headed for largest weekly decline since December. Gold momentarily exceeds $3,000 before pulling back. U.S. stocks rebound following S&P 500 correction; German bond yields increase. Investors stay wary amid intensifying trade tensions.
Global Markets Roundup: 14 March 2025
Global stocks rebounded on Friday, with Wall Street surging after the S&P 500 entered a correction, and gold temporarily reached a record high before retreating. Nonetheless, investors remained wary as trade tensions intensified due to U.S. tariff threats on European products.
Stock Market Recovery Amid Trade War Jitters
Despite persistent concerns about the economic effects of tariffs, stocks increased, supported by technical factors following a steep drop earlier in the week.
The major U.S. indices saw significant gains:
• Dow Jones Industrial Average increased by 571.88 points (1.40%) to reach 41,385.45
• S&P 500 rose by 102.39 points (1.85%) to 5,623.87
• Nasdaq Composite advanced by 407.61 points (2.36%) to 17,710.63
The S&P 500 correction was triggered Thursday after Trump proposed a 200% tariff on European wine and spirits, retaliating against EU countermeasures on U.S. steel and aluminum. MSCI’s global stock index rose 1.61% to 834.78 but remained on track for its biggest weekly drop since December.
Germany’s Fiscal Deal Boosts Yields, Euro Rises
In Europe, yields on German government bonds increased after the Chancellor-to-be, Friedrich Merz, received crucial support from the Greens for a significant rise in state borrowing.
• The yield on Germany’s 10-year Bund rose by 2.6 basis points to 2.88%
• The U.S. 10-year Treasury yield went up by 3 basis points to 4.306%
• The 30-year Treasury yield increased by 2.1 basis points to 4.617%
• The 2-year Treasury yield surged by 5.6 basis points to 4.009%
The euro EURUSD appreciated broadly, supported by the German fiscal agreement:
• It rose 0.18% against the dollar to $1.0871
• It gained 0.47% against the British pound to 84.17 pence
• It advanced 0.56% against the Swiss franc to 0.96265
At the same time, the U.S. dollar strengthened against the yen and Swiss franc due to optimism that the U.S. government would avert a shutdown over the weekend:
• USDJPY increased by 0.42% to 148.43
• USD/CHF went up 0.37% to 0.885
Asia Markets End Mixed
Earlier in the day, Asian markets saw modest gains, with MSCI’s Asia-Pacific index outside Japan closing nearly 1% higher. However, it still ended the week down 1.5% amid ongoing trade concerns.
Gold Rises and Oil Recovers After Sharp Drop
Spot gold briefly surpassed $3,000 per ounce for the first time, before retreating as investors returned to riskier assets.
• Spot gold was last down 0.19% at $2,981.99 per ounce
• U.S. gold futures edged 0.07% higher to $2,986.50 per ounce
Gold is still up 13% for the year, as trade tensions and growth concerns boost demand for safe-haven assets.
Oil prices recovered after falling in the previous session, as investors considered the possibility of extended conflict in Ukraine and the potential effects on global energy supplies.
• U.S. crude rose 0.59% to $66.94 per barrel
• Brent crude edged up 0.53% to $70.25 per barrel
In agricultural commodities, the most-active corn on CBOT ZC1! fell by 7-1/2 cents to $4.57-3/4 a bushel, with additional pressure from index funds selling off their long positions, according to Basse. Wheat ZW1! dropped 5-3/4 cents to $5.56-3/4 a bushel, while the most-active soybean contract ZS1! increased by 4 cents to $10.14-1/2 per bushel. May NY world sugar #11 (SBK25) has decreased by -0.18 (-0.94%), and May London ICE white sugar #5 (SWK25) has dropped by -1.40 (-0.26%). Sugar prices declined from 2-week highs and turned lower due to forecasts of rain in Brazil next week.
May ICE NY cocoa (CCK25) has decreased by -338 (-4.14%), and May ICE London cocoa #7 (CAK25) has fallen by -288 (-4.54%). Today, cocoa prices dropped to 4-month lows due to expectations of a global cocoa surplus. Over the past month, cocoa prices have been under pressure because of an improved supply outlook. May arabica coffee (KCK25) has decreased by -10.95 (-2.84%), and May ICE robusta coffee (RMK25) has fallen by -81 (-1.47%). Coffee prices are moderately lower today, with arabica reaching a 2-week low.
Looking forward refer to the economic calendar below to see the upcoming events scheduled for today and the rest of the week.
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team