Global markets stabilize amid ongoing tariff uncertainties
Markets around the world showed mixed signals this week as investors grapple with uncertainties related to U.S. tariffs and trade policies. Major central banks have indicated that these trade tensions could hinder economic growth and raise inflation, making it tough for investors to plan their next moves. The MSCI World equity index managed to rise by 0.7%, ending a four-week slump. The S&P 500 gained 0.5%, and the Nasdaq saw a smaller increase of 0.17%, marking its first weekly gain in five weeks. European stocks also performed well, rising over 1%. Despite these gains, analysts suggest that market direction may remain unclear as the end of the quarter approaches. Attention is increasingly focused on April 2, when President Trump is expected to announce new tariffs on various countries. This uncertainty is causing hesitation among businesses and investors, impacting hiring and investment decisions. One noticeable trend is the shift of investment from U.S. markets to international ones. U.S. stocks have lagged behind their global counterparts by about 13 percentage points this year, with European markets benefiting from policy changes in Germany. Gold saw a rise of 1% this week, continuing its streak of gains, while the lira dropped significantly amid political unrest in Turkey. Despite some optimism in European markets, concerns remain about the effectiveness of recent fiscal policies. As markets head into next week, key economic data and earnings reports will be closely watched for potential impacts on trading.