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Markets Update: Israeli airstrikes on Gaza escalate Middle East tensions. U.S. housing and industrial data surpass forecasts. Trump and Putin to talk about Ukraine in significant call. Gold surges beyond $3,000 due to safe-haven demand.
Global Markets Roundup: 18 March 2025
U.S. stocks declined on Tuesday due to geopolitical unrest, economic unpredictability, and worries about Federal Reserve policies affecting investor confidence. Gold soared above $3,000 per ounce, reaching new heights as safe-haven investments increased amid Israeli airstrikes on Gaza and Trump's continuous tariff conflict.
Market Jitters as Fed Meets, Global Tensions Rise
Wall Street struggled as tech megacaps dragged the Nasdaq lower, while investors braced for the Federal Reserve’s two-day policy meeting. The central bank is widely expected to keep rates unchanged as it monitors inflation trends and the economic impact of Trump’s shifting trade policies.
A new wave of Israeli missile attacks on Gaza, killing over 400 people, reignited Middle East tensions, further clouding market sentiment. Meanwhile, Trump and Russian President Vladimir Putin prepared to discuss a potential end to the Ukraine war in a highly anticipated call.
U.S. Economic Data Offers Some Relief
Stronger-than-expected data provided a glimmer of optimism:
Single-family housing starts rebounded sharply
Industrial output posted robust growth
The resilience in U.S. economic indicators helped ease recession fears, but wasn’t enough to offset geopolitical concerns and monetary policy uncertainty.
Wall Street Declines, European Stocks Rise
Major U.S. indexes were down:
Dow Jones Industrial Average fell 334.15 points (0.80%) to 41,505.78
S&P 500 dropped 68.53 points (1.21%) to 5,606.59
Nasdaq Composite plunged 313.10 points (1.76%) to 17,496.33
Meanwhile, European markets rallied after Germany’s parliament approved a sweeping debt reform package aimed at stimulating growth in Europe’s largest economy.
FTSEurofirst 300 rose 0.44%
STOXX 600 gained 0.47%
MSCI’s global stock index dipped 0.59%
So far this year, European stocks have outperformed global markets, supported by increased government spending and economic stimulus.
Treasury Yields Steady as Investors Weigh Risks
U.S. Treasury yields remained little changed, reflecting a mix of economic optimism and policy uncertainty:
10-year Treasury yield fell 1.3 basis points to 4.293%
30-year bond yield remained flat at 4.5987%
2-year Treasury yield dropped 1.3 basis points to 4.04%
Dollar Holds Firm as Euro Reacts to Germany’s Debt Vote
The euro initially wavered before recovering as Germany’s debt reform passed, boosting confidence in European fiscal policy.
Meanwhile, the Mexican peso and Canadian dollar weakened slightly against the greenback.
Crypto Slumps, Oil Steady on Geopolitical Risks
Cryptocurrencies lost ground as investors moved to safer assets amid rising geopolitical risks:
Bitcoin fell 2.53% to $81,847.64
Ethereum declined 2.46% to $1,888.17
Oil markets remained supported by escalating tensions in the Middle East and China’s stimulus measures:
U.S. crude fell 0.49% to $67.24 per barrel
Brent crude dipped 0.28% to $70.87 per barrel
Gold Hits Record Highs on Safe-Haven Demand
Gold soared past $3,000 per ounce as investors piled into the precious metal amid rising global uncertainty:
Spot gold rose 0.98% to $3,031.00 per ounce
U.S. gold futures climbed 0.86% to $3,025.80 per ounce
Agricultural commodities
Chicago Board of Trade (CBOT) wheat futures edged up 0.1% to $5.69 per bushel, while soybeans gained 0.2% to $10.17 ¼ per bushel. Corn, however, declined 0.8%, settling at $4.57 ½ per bushel.
In the cocoa market, May ICE New York cocoa rose 3.19% (+250) and May ICE London cocoa gained 2.44% (+149). The rebound is attributed to technical short covering following a recent sell-off that pushed prices to oversold levels. Despite today's gains, cocoa prices remain under pressure, with New York and London contracts hitting four-month lows earlier this week due to an improving supply outlook.
Meanwhile, May New York world sugar #11 inched up 0.10% (+0.02), while May London white sugar #5 fell 0.41% (-2.30). Sugar prices extended their rally, with New York sugar reaching a three-week high and London sugar hitting a three-and-a-half-month high, driven by concerns over declining global production.
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