NAB Morning Call Ceasefires – one ends as another opens up, perhaps
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Mar 18, 2025 Geopolitical tensions are causing market turmoil, with tech stocks in the U.S. declining while Europe rallies. The latest ceasefire developments have left investors jittery, especially with the Israel-Hamas situation worsening. Notably, there's a marked shift from U.S. equities to European shares. Germany's ramped-up defense budget is impacting bonds, while Canada's rising CPI raises flags for its central bank. Meanwhile, U.S. economic indicators reveal surprising industrial growth, prompting discussions on inflation's global ripple effects.
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Market Uncertainty
- Markets reacted with uncertainty, driven by geopolitical events like the Israel-Hamas ceasefire ending.
- The US dollar fell, while gold reached new highs, reflecting a risk-off sentiment.
Tech Stocks and European Markets
- Big tech stocks like Meta, Nvidia, and Alphabet experienced significant declines.
- This contrasts with European markets, which saw gains, suggesting a potential shift in investment.
Ceasefire Agreement
- A 30-day ceasefire between Putin and Trump has been reached, focusing on energy, infrastructure, and maritime targets.
- Uncertainty remains about the agreement's details, particularly regarding Ukraine's access to weaponry and assistance.