Weekly Market Review

In this edition of our Weekly Market Review, global markets showed signs of stability, with U.S. indices edging higher while the FTSE 100 dipped following the Bank of England’s latest rate decision. From shifting inflation expectations to central bank caution and fresh moves in commodities and ESG, we break down the key developments shaping investor sentiment.

Market Recap.

It was the turn of the Dow Jones Industrial Average ETF (+1.15%) to lead last week, as markets stabilised amid recent volatility. The S&P 500 ETF (+0.64%) and Nasdaq 100 ETF (+0.57%) followed, whilst the FTSE 100 ETF (-0.43%) fell as the Bank of England held interest rates at 4.50%, following concerns around “higher for longer” inflation.

News.

The European Central Bank’s case to keep lowering borrowing costs has strengthened since its last decision, according to Executive Board member Piero Cipollone. The former Bank of Italy official, speaking in an interview with Spanish newspaper Expansion, cited reasons ranging from lower energy prices, the appreciation of the euro, higher real interest rates, and the risk of an escalation in trade tensions with the US.

Inflation.

The British public's expectations for inflation in the short term hit their highest level in more than a year in February, according to a Citi/YouGov survey on Thursday that underscored the challenges facing the Bank of England.

The survey showed households' inflation expectations for the year ahead stood at 3.9% last month, up from 3.5% in January and the highest level since January 2024.

Central Banks.

The Bank of England held interest rates at 4.5% and warned against assumptions that they would be cut over its next few meetings as it grappled with deep uncertainty hanging over the British and world economies.

"There's a lot of economic uncertainty at the moment," Governor Andrew Bailey said in a statement.

He said the BoE still thought rates were on a gradually declining path, but it would look "very closely at how the global and domestic economies are evolving at each of our six-weekly rate-setting meetings."

Commodities.

Copper gained 2.79% for the week, nearing record levels driven by concerns over US tariffs and new stimulus measures in China. Meanwhile, China’s GDP growth target was set at 5.00%, and the government is implementing stimulus measures to boost domestic consumption and support the economy, further intensifying copper demand.

Elsewhere, Cotton fell by 2.35% after China imposed an additional 15% tariff on US cotton imports.

ESG.

Amazon have announced the launch of a new service, providing access to high-quality carbon credit investments to companies in its value chain with net zero climate targets.

The new service aims to utilise Amazon’s scale and resources to help companies to start investing in high-quality carbon credits, supporting key priorities such as reforestation and advancing technological carbon removal.

Geopolitics.

British Prime Minister Keir Starmer said US President Donald Trump has a point that European countries must bear a greater burden for their collective self-defence, the New York Times said on Sunday.

"We need to think about defence and security in a more immediate way," he told the newspaper in an interview.

Starmer is trying to assemble a multinational military force that he calls a coalition of the willing to keep Ukraine's skies, ports and borders secure after any peace settlement, the report said.

Week Ahead.

US: The Fed’s preferred inflation gauge, the PCE Price Index, will be released Friday, offering insights into inflation’s trajectory.
UK: Chancellor Rachel Reeves will deliver an economic update on Wednesday, assessing fiscal progress since October.

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 - ECB Case to Cut Rate Has Strengthened, Cipollone Tells Expansion, By Yahoo Finance/Reuters, 24/03/2025

Inflation - UK inflation expectations highest in 14 months, Citi/YouGov survey shows, Reuters, 20/03/2025

Central Banks - Bank of England keeps rates on hold, warns against assumptions for cuts in face of uncertainty, Reuters, By Howard Schneider and Ann Saphir, 20/03/2025

ESG - Amazon Launches Carbon Credit Investment Service, by ESG Today, 24/03/25

Geopolitics - UK PM Starmer says Trump has a point on European defence commitment, NY Times reports, Reuters, by Rhea Rose Abraham, 24/03/2025

Commodities - Data from Koyfin, qualitative data from Trading Economics, 24/03/2025

Week ahead - Nathan Sweeney, Marlborough Group, 24/03/2025

Weekly Market Review - 24-03-2025