Weekly market news: 10 March 2025

 

Markets are gearing up for another crucial week, with US inflation data and other  central bank signals in focus. The key highlight? The US consumer price index (CPI) report on Wednesday 12 March, which will provide fresh insight into whether US inflation is cooling enough for the Federal Reserve (Fed) to consider rate cuts in the coming months.

After Fed Chair Jerome Powell’s testimony last week, markets remain divided on the rate outlook. Powell reiterated that the Fed is in no rush to cut rates until inflation is firmly under control. If February’s CPI comes in hotter than expected, it could push rate cut bets further into the year.

Meanwhile, European markets are also bracing for inflation updates, with the European Central Bank (ECB) due to release its latest meeting minutes. There’s also the quarterly Bank of England bulletin to look forward to, and a UK GDP release this Friday.

On the corporate front, Oracle and Adobe will report earnings, offering a glimpse into enterprise software demand and AI-related investments. With AI stocks still dominating headlines, any updates on cloud and AI-driven growth could impact sentiment in the tech sector.

 

Coming up this week

Fund closures

Here are upcoming fund closures for this week. The funds listed will be closed for dealing on that day, and buys and sells will be executed on the next working day.

 

What you might’ve missed last week

Global: Oil prices retreated after OPEC signaled no immediate supply cuts, while China’s National People’s Congress unveiled modest economic growth targets for 2025, disappointing investors hoping for stronger stimulus.

US: The February jobs report showed the labor market remains resilient, with unemployment holding steady. However, wage growth slowed slightly, raising questions about consumer spending strength.

The S&P 500 closed out last week with its worst performance in six months. Volatility is growing amid back-and-forth tariff announcements and the lack of clarity around the Trump administration’s trade policies.

Europe: The ECB cut interest rates by 25 basis points to 2.5% on 6 March. Meanwhile, Germany’s industrial production declined for the third consecutive month, signaling ongoing economic weakness.

 

Why it matters

Inflation remains the key driver of market sentiment. If CPI data shows persistent price pressures, investors may have to brace for a longer wait before rate cuts materialise. The Fed has made it clear that it needs more evidence of cooling inflation before acting, and this week’s data could tip the scales.

Europe’s economic outlook remains mixed. While inflation is easing, growth concerns persist, particularly in Germany. The ECB minutes may offer insights into whether policymakers are leaning toward further rate cuts in the summer.

In corporate news, AI-driven optimism continues to fuel tech stocks, but upcoming earnings from Oracle and Adobe will test whether enterprise demand is keeping pace with investor enthusiasm.

The bottom line? Inflation data will dominate the narrative this week, with markets looking for reassurance that central banks are on track for rate cuts. Expect volatility as investors digest key economic reports and corporate earnings.

Click through to see your investments with Moneybox.

 

See investments

 

Capital at risk. All investing should be long term. The value of your investments can go up and down, and you may get back less than you invest.

We do not offer personal financial advice or make specific recommendations based on your individual circumstances. If needed, seek independent financial advice before making decisions regarding your financial goals.