March 2025 | In February, markets showed that love is in the air: despite new tariff announcements, inflation risks, and the DeepSeek shakeup, positive market sentiment continues to prevail. In Europe, equities reached new all-time highs, and in the US, there is evidence of a broadening equity rally, as the dominance of the Magnificent Seven may be starting to fade. However, uncertainty remains at extreme levels, with renewed fears emerging following the higher-than-expected January Consumer Price Index, which recorded its fastest increase in a year and a half, and some weak US economic data.
01 | Inflation is the dominant concern, as the market remains highly sensitive to it, which could pose a significant challenge for Trump.
02 | Global growth is set to stabilise as inflation gradually declines, but policy uncertainty under Trump adds risks.
03 | The eurozone is supported by a clearer ECB policy path. Fiscal support in Germany following the elections and a possible increase in defence spending are key themes to monitor.
Unless otherwise stated, all information contained in this document is from Amundi Asset Management as of March 3, 2025. Diversification does not guarantee a profit or protect against a loss. The views expressed regarding market and economic trends are those of the author and not necessarily Amundi Asset Management and are subject to change at any time based on market and other conditions, and there can be no assurance that countries, markets or sectors will perform as expected. These views should not be relied upon as investment advice, a security recommendation, or as an indication of trading for any Amundi product or service. This material does not constitute an offer or solicitation to buy or sell any security, fund units or services. Investment involves risks, including market, political, liquidity and currency risks. Past performance is not indicative of future results. Amundi US is the US business of Amundi Asset Management.
