Weekly Market Review

Welcome to CleverAdviser's Weekly Market Review, where we break down the key movements in global markets, highlight the latest economic developments, and spotlight ESG headlines making waves. From inflation updates and central bank commentary to geopolitical shifts and sustainability pledges, this week offers a snapshot of the factors shaping investor sentiment and market direction.

Market Recap.

The FTSE 100 ETF (+0.63%) led major markets last week, as the rest faced more volatility. The Nasdaq 100 ETF (+0.04%) was flat whilst the S&P 500 ETF (-0.79%) and the Dow Jones Industrial Average ETF (-2.48%), as both the Consumer discretionary and Consumer staples sectors fell.

News.

Britain's economy unexpectedly contracted in January, extending a run of stop-start data this year.

Gross domestic product fell by 0.1% in January, pulled down by a sharp drop in industrial output compared with December, the Office for National Statistics said on Friday.

"Following the lacklustre performance in the second half of 2024, growth remains fragile due to global and domestic uncertainty," said Hailey Low, economist at the National Institute of Economic and Social Research think tank.

"It is crucial that the upcoming Spring Statement provides stability rather than adding to domestic uncertainty.”

Inflation.

U.S. consumer prices increased moderately in February as higher shelter costs were partially offset by cheaper airline fares, giving the Federal Reserve room to keep interest rates unchanged next week while monitoring the economic impact of a trade war. In the 12 months through to February, the CPI (Consumer Price Index) increased by 2.80% after climbing to 3.00% in January.

But the relief offered by the tame Consumer Price Index report from the Labor Department on Wednesday could be temporary as the data did not fully capture a cascade of tariffs by the U.S. administration, which has caused a surge in consumers' inflation expectations and prompted economists to upgrade their inflation forecasts.

Central Banks.

Federal Reserve Chair Jerome Powell said it remains to be seen if the U.S. administration's tariff plans will prove to be inflationary, mapping out a checklist of things that could cause new import taxes to lead to more persistent price pressures.

"In a simple case where we know it's a one-time thing, the textbook would say look through it," with no need for the Fed to respond with tighter monetary policy, Powell said at a question-and-answer session during an economic forum in New York City. "But you also want to be sure of a couple things," he continued. "If it turns into a series of things ... If the increases are larger, that would matter, and what really does matter is what is happening with longer-term inflation expectations. How persistent are the inflationary effects?"

"You want to look at all those things," Powell said.

Commodities.

Silver climbed toward $33.90 an ounce, its highest level since late October, as investors sought safe-haven assets amid rising tariff tensions and growing bets on Federal Reserve rate cuts following weaker-than-expected U.S. inflation data.

Elsewhere, Natural Gas declined by 10.22% last week, seen more as a technical correction than a change of trend as stronger-than-expected heating demand and robust LNG exports provided support for the price to rise over the medium term.

ESG.

Tech giants Amazon, Google and Meta joined a group of major companies pledging to support the goal to triple global nuclear energy capacity by 2050.

The pledge comes as several major technology companies have pivoted over the past several months to nuclear energy as a solution to address the need for a rapid increase in electricity production to accommodate the growth in AI-driven data centre capacity and power consumption, while protecting their goals to reduce the emissions impact of their operations.

Geopolitics.

U.S. President Donald Trump said he plans to speak to Russian President Vladimir Putin on Tuesday and discuss ending the war in Ukraine, after positive talks between U.S. and Russian officials in Moscow.

"I'll be speaking to President Putin on Tuesday. A lot of work's been done over the weekend."

Trump is trying to win Putin's support for a 30-day ceasefire proposal that Ukraine accepted last week, as both sides continued trading heavy aerial strikes through the weekend and Russia moved closer to ejecting Ukrainian forces from their months-old foothold in the western Russian region of Kursk.

Week Ahead.

US: The Federal Reserve’s policy decision on Wednesday will be the most significant event, with investors watching for rate projections and Powell’s guidance on future policy moves.
UK: The Bank of England meeting on Thursday will provide insights into how policymakers are balancing economic weakness and inflation risks.

Sources.

Anthony Walters - Head of ESG at Clever Adviser Technology Ltd (Clever)

Market recap - Data sourced from FE FundInfo & Koyfin. ETFs quoted: iShares Core FTSE 100 UCITS ETF, iShares Core S&P 500 UCITS ETF, iShares Nasdaq 100 UCITS ETF (quoted in Pounds Sterling).

News - UK economy sputters in January, underlining Reeves' growth challenge, Reuters, By David Milliken and Andy Bruce, 14/03/2025

Inflation - US consumer inflation slows in February; tariffs expected to boost prices, Reuters, By Lucia Mutikani, 12/03/2025

Central Banks - Powell says tariffs could feed inflation, Fed must wait to determine the impact, Reuters, By Howard Schneider and Ann Saphir, 7/03/2025

ESG - Amazon, Google, Meta Join Pledge to Help Triple Global Nuclear Energy Capacity, by ESG Today, 13/03/25

Geopolitics - Trump to speak with Putin on Tuesday about ending war in Ukraine, Reuters, By Nathan Layne and Jeff Mason, 17/03/2025

Commodities - Data from Koyfin, qualitative data from Trading Economics, 13/03/2025

Week ahead Nathan Sweeney, Marlborough Group, 16/03/2025

Weekly Market Review - 17-03-2025