Asian/European Markets

Keep calm and carry on. Recent weeks have seen financial markets rattled by swirling news headlines, tariff whiplash, and rising economic uncertainty.

Unpredictable U.S. tariff policy has heightened concerns about a potential U.S. economic recession.

One of the biggest challenges investors face today is navigating the most concentrated U.S. stock market in history, where the largest stocks represent a record share of total market value.

Banks’ retreat is creating opportunity for investors.

Recent economic data has been all over the map. Consumer confidence sank this month to the lowest level since November 2022, yet the labor market remains strong, with historically low unemployment and rising wages.

Stocks rebounded on Wednesday as core inflation in the United States came in below consensus expectations and news of a possible 30-day truce in the Russia-Ukraine war emerged. Big tech stocks also recovered after flirting with bear-market territory earlier this week.

During the onset of the COVID crisis, I made a note to myself to write an update in five years to discuss what happened to the markets since that trying period of time. This week, I received a task alert in Salesforce reminding me to write that update.

News headlines this week have been dominated by recession fears in the U.S., with the S&P 500 and the Magnificent 7 shedding value. Yet, amid this rising uncertainty, a positive story is emerging—the performance of European markets.

Ben Inker and John Pease look at the economics of trade and tariffs at a theoretical level and explain why broadly applied tariffs are a needlessly economically way to achieve U.S. goals.

March came in like a lion, much to the bears’ delight. The S&P 500® plunged from its February 19 high on the heels of stern tariff talk and phrases like “a little bit of an adjustment period” from President Trump and the economy entering a “detox period,” as Treasury Secretary Bessent said last week.

There has been further indication that the U.S. will underperform during a negative market, according to DoubleLine's Jeffrey Gundlach.

Germany is newly motivated to reconsider its fiscal restraint.

In a world of rich valuations and heightened geopolitical uncertainties, we believe Japanese equities are well positioned to deliver attractive returns.

Recent US stock weakness may be related to a downturn in US economic data and headline shocks related to tariffs.

As we wade into March, market volatility is at the forefront, leaving investors grappling with uncertainty surrounding tariffs and mixed economic signals. Though the S&P 500 experienced a bounce towards February's end, it slipped 1% overall, revealing lingering challenges for iconic tech stocks and the broader equity landscape.

As the consumer goes, so goes the U.S. economy. Consumers make up roughly 70 percent of U.S. GDP.

Economic growth, earnings performance, and rising fiscal spending coupled with "America First" policies are driving international stock markets.

Volatility across financial markets has become a persistent theme in 2025. The recent volatility has stemmed from a range of factors, including:

For decades, the U.S. dollar’s dominance has rested on two pillars: America’s deep capital markets and its global security alliances. Today, both are under strain.

The EV shakeout is underway. When the dust settles, only a few players will remain. Many more will be relegated to the scrapyard of failed ambitions.

Costco's earnings may have disappointed in the near-term, but the company may be in a prime position to perform during a tariff showdown.

At the start of the year, our Investment Strategy Committee outlook was positive for both the economy and the equity market, supported by strong consumer, labor market, and corporate fundamentals.

Trade policy clarity is a long way off.

The U.S. has poured more than $120 billion into Ukraine since its war with Russia began three years ago, but with a new administration in Washington, that support is grinding to a halt.

We highlight some underreported positive developments that could keep economic growth on track and support higher equity prices in the months ahead.

On March 4, 2025, the Trump administration imposed tariffs of 25% on Canada and Mexico and increased tariffs on Chinese imports to 20% from the previous 10% imposed earlier in the year.

The European Central Bank will likely continue to cut interest rates, but future decisions could be more contentious.

On the latest edition of Market Week in Review, Senior Investment Strategist and Head of Canadian Strategy, BeiChen Lin, discussed how markets are reacting to U.S. trade policy uncertainty.

One month into President Donald Trump’s new term, financial markets are adjusting to a rapidly shifting economic and policy environment. Investors are watching closely as tariffs, interest rate expectations and regulatory changes take center stage.

Volatility is back in town. Tariff jitters and concerns about growth and inflation have resulted in an S&P 500® dip and the Cboe Volatility Index (VIX) jumping above 20. Investors grapple with a very sanguine backdrop painted by the fourth-quarter earnings season and policy uncertainty.

Treasury yields have been falling for weeks. Yet inflation expectations remain high and recent growth data have been fairly strong—not a traditional backdrop for declining yields. What's happening?

Though the new US policy focus is on oil and gas, wider opportunities still beckon.

As daily headlines drive volatility, the market has avoided overreacting thus far.

Many ASEAN members punch above their economic weight in international trade. But their power may also make them targets in the mounting global trade battle.

We view quarterly earnings season as a critical checkup on how markets are handling current challenges.

Differing sales tax regimes can appear unfair.

We detail some key factors driving the recent market volatility and provide our perspective on how we believe these events may unfold and impact the economy and financial markets.

We wrote in last month's letter that the U.S. stock market had to meet lofty earnings expectations to maintain its strong performance relative to global benchmarks, while the latter had a lower bar because of considerably cheaper valuation multiples and higher dividend yields.