Key Market Movements: Inflation, Tariffs, and More
Tariffs, inflation, and interest rates continue to shape the global economy.
Key market movements: Inflation, Tariffs, and More.
Week of March 3rd to 7th
Global markets are experiencing significant shifts in monetary policies, employment, and international trade. Below is a summary of the most relevant developments:
- United States: The manufacturing sector remains in mild expansion, while employment rose by 151,000 thousand jobs, and the unemployment rate held steady at 4.1%. A 25% tariff on Canadian imports and a 10% tariff on Chinese products took effect, though some exemptions may apply in the coming months. Mexico secured an exemption for USMCA-listed products until April 2.
- Europe: Inflation in the eurozone fell to 2.4% year-over-year, but economic activity remains stagnant. The ECB cut its benchmark rate to 2.5%, marking six reductions since last June.
- Japan: Corporate investment spending contracted by 0.2% year-over-year in Q4 2024, the first decline in nearly four years.
- China: New tariffs of up to 15% on U.S. products will take effect on March 10. Additionally, the government set its GDP growth target at “around 5%” and announced further fiscal stimulus.
- Brazil: Annual inflation is projected to close at 5.65%, with the benchmark rate expected to reach 15% this year.
- Mexico: Remittances totaled $4.66 billion in January, reflecting a 10.8% monthly decline.
We will continue to monitor these events and their impact on the markets.
Important events in the coming weeks:
- March 10: Inflation data will be released in China.
- March 12 Inflation figures will be released in
Monitor
* Due to internal logistics reasons, the yields and prices are presented with the closing of March 6.
