Monetary policy shifts and caution in Europe

In Switzerland, the central bank lowered its benchmark interest rate by a quarter point to 0.25%. This move extends a series of rate reductions intended to counter currency inflows and protect against global uncertainty. Policymakers signaled a lower likelihood of further cuts in the near term, citing diminished available room for easing and the desire to avoid renewed pressure on the financial system. They also reaffirmed their readiness to intervene in currency markets if necessary.

Meanwhile, in the United Kingdom, the Bank of England voted to keep its policy rate unchanged at 4.5%. Officials have adopted a cautious stance, citing ongoing inflation concerns, resilient wage growth, and an unsettled global backdrop shaped by the United States’ new tariff measures. While the central bank maintains an easing bias, there is no guarantee of additional cuts in the immediate future. This reflects heightened uncertainty in domestic and international conditions, which range from energy costs to trade policy.

Tariff tensions and growth concerns

Global markets continue to grapple with the potential fallout from new and planned tariffs announced by the US administration. With additional measures slated to take effect in early April, businesses worldwide are bracing for slower trade flows, higher costs, and an unpredictable investment climate. In Europe, policymakers have weighed possible countermeasures but have thus far taken a careful approach, mindful that retaliatory actions could further undermine consumer and corporate confidence.

Fluctuations in Asian equities

Stocks in Asia have shown increased volatility amid tariff worries and corporate guidance cuts. Markets in Hong Kong, Taiwan, and Indonesia experienced notable selling pressure, with technology-related shares feeling the brunt as investors reassess valuations. At the same time, improved U.S. housing data and stable jobless claims briefly provided pockets of optimism, though this did little to offset broader concerns about global trade dynamics and company earnings.

Gold’s safe-haven surge

Against this uncertain backdrop, gold has remained near record highs. Investors continue to seek out safe-haven assets, driving up bullion prices and leading many analysts to project further gains should trade frictions deepen. The metal’s appeal has also been supported by monetary policy decisions—while major central banks have largely stayed on hold in recent meetings, the possibility of additional rate cuts (or at least very accommodative stances) keeps real yields low, enhancing gold’s relative attractiveness.

Looking ahead

Policymakers in several regions have emphasized the need for flexibility, with many central banks wanting to see how trade policies and inflation trends unfold before making their next moves. Investors now await critical earnings releases in the technology and consumer sectors, as well as any further escalation (or resolution) of tariff disputes. In the coming weeks, shifts in corporate guidance and key economic indicators will likely play a major role in shaping sentiment and pricing across equity, currency, and commodity markets.

Prepared by Nour Hammoury, Chief Market Analyst at SquaredFinancial
Nour is an investor, independent market strategist, and financial advisor. He holds a BA in Finance and Banking Science from Al-Ahliyya Amman University and a CFTe in Economics from the International Federation of Technical Analysts. He has more than 15 years of experience in forex, stocks, and global economic developments, as well as central bank policies and intermarket analysis. He appears regularly on major international TV networks, such as BBC, Al-Jazeera, Al Hurra, CNBC, and Bloomberg, holding open discussions and sharing insights and readings of the markets and trends.

Disclaimer
This is a marketing communication and does not contain, and should not be construed as containing, investment advice or an investment recommendation or, an offer of or solicitation for any transactions in financial instruments. Past performance is not a guarantee of or prediction of future performance. The information contained herein does not constitute a personal recommendation and does not consider your personal investment objectives, investment strategies, financial situation or needs. Squared Financial makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on a recommendation, forecast, or other information supplied by Squared Financial.

The information on this site is not intended for any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.