{"id":2581,"date":"2025-04-11T14:38:31","date_gmt":"2025-04-11T12:38:31","guid":{"rendered":"https:\/\/talentagestion.es\/informe-mensual-de-mercados-marzo-2025\/"},"modified":"2025-04-11T14:45:11","modified_gmt":"2025-04-11T12:45:11","slug":"informe-mensual-de-mercados-marzo-2025","status":"publish","type":"post","link":"https:\/\/talentagestion.es\/en\/informe-mensual-de-mercados-marzo-2025\/","title":{"rendered":"Monthly Market Report \u2013 March 2025"},"content":{"rendered":"\n

March was characterized by a widespread increase in volatility across most markets and asset classes<\/strong>. The impact of tariffs<\/strong>, doubts over U.S. economic growth<\/strong>, and increased public spending in Germany<\/strong> were the main catalysts.<\/p>\n\n\n\n

The ongoing comments about new tariffs<\/strong> by the Trump administration took center stage. In addition to reciprocal tariffs to be announced in April, Trump surprisingly announced new 25% tariffs on the automotive sector<\/strong>. Markets started to fear a potential slowdown in the U.S.<\/strong>, negatively affecting American equities. The benchmark S&P-500 declined by -5.75% in March<\/strong>, marking its second consecutive negative month. Once again, the so-called “Magnificent Seven” stocks were the hardest hit<\/strong>.<\/p>\n\n\n\n

European markets ended their rally, although declines were more moderate compared to Wall Street<\/strong>; indices like the Eurostoxx-50 fell -3.94% in March<\/strong>. Thus, the cumulative performance differential remains favorable to Europe, with the Eurostoxx-50 up +7.20% in 2025 versus the S&P-500\u2019s -4.59%<\/strong>.<\/p>\n\n\n\n

Central Banks acted as expected<\/strong>. The European Central Bank cut rates by 25 basis points<\/strong> (the second cut in 2025), bringing the benchmark rate down to 2.50%. Meanwhile, the U.S. Federal Reserve kept its rate unchanged at 4.50%, though it expressed concerns regarding U.S. growth and persistent inflation<\/strong>. Accordingly, the U.S. price index fell to +2.8% from the previous +3.0%<\/strong>.<\/p>\n\n\n\n

Despite the ECB rate cut, German yields rose significantly. Germany\u2019s possible new chancellor after February elections has indicated intentions to eliminate existing debt limits. Besides increased defense spending<\/strong>, Germany announced a new \u20ac500 billion fund for infrastructure investment<\/strong>. The German 10-year yield reached levels around 2.95%, unseen since October 2023. This upward movement broadly affected other European yield curves, making Euro fixed income a clear detractor of returns this month<\/strong>.<\/p>\n\n\n\n

U.S. yield curves were volatile, with the 10-year benchmark closing March at 4.20%, unchanged from February. Markets are uncertain about the Fed\u2019s next steps given the high tariff environment: lower economic growth should imply monetary easing, but rising prices complicate lowering rates.<\/p>\n\n\n\n

The EUR\/USD exchange rate was another significant factor: it rose to 1.0945 EUR\/USD (+5.49%) from February\u2019s 1.0375 EUR\/USD<\/strong>, mainly driven by higher European yields.<\/p>\n\n\n\n

Geopolitically, uncertainty around the Russia-Ukraine conflict increased. February rumors of a peace deal evolved into formal contacts, but Donald Trump’s mediation reduced visibility on their potential success<\/strong>.<\/p>\n\n\n\n