Market developments
Equities: The Nasdaq is experiencing one of its longest losing streaks since 2022, while the S&P 500 remains volatile. Concerns over economic slowdown, tariffs and geopolitical risks have kept stocks under pressure, and analysts expect market turbulence to persist until at least the second half of 2025. Meanwhile, trend-following funds have turned net short on US equities, signaling further caution, while retail investors continue pouring money into stocks, possibly delaying a market bottom.
Fixed Income: The central banks in England, Japan and the U.S. all decided to maintain interest rates at current levels as they navigate the battle against inflation and economic uncertainty. Overall, government yields moved lower, and bond prices increased as risks from an escalating trade war continue to mount.
Commodities: Gold climbed another 1.2% this week, marking over 15% gains for the year as investors seek safety amid the geopolitical conflicts and a potential trade war. Analysts expect this upward trend to continue, citing price targets of ~$3,500 an ounce driven by expectations of additional rate cuts in the U.S. this year.