Global markets have turned notably more cautious through the middle of the week. While first-quarter earnings have broadly surprised to the upside, particularly across technology, financials and industrials, markets are increasingly focused on higher energy prices and the possibility that central banks may need to keep interest rates elevated for longer.
This week, global markets have been boosted by renewed hopes of a peace deal between the US and Iran. On Wednesday indices across the UK and Europe jumped 2-3% while the S&P 500 in the US reached a new record high.
Markets have traded cautiously this week, with performance remaining fairly mixed as investors weigh shifting economic signals.
Over in China, Xi Jinping chaired a meeting of the Communist Party of China this week to assess the region’s current economic conditions and near-term growth outlook.
President Donald Trump stepped back from his previously hardline stance on resuming the ceasefire with Iran on Tuesday. At the request of Pakistani authorities, he announced that the current pause in military operations would continue for an indefinite period.
China’s trade surplus narrowed sharply in March, falling to $51.13 billion from $213.62 billion in February, as imports rose on stronger demand for items such as AI chips and infrastructure-related goods, while exports declined.
Shortly after a two-week ceasefire between the US and Iran was agreed, tensions have resurfaced, with Iran once again refusing to open the Strait of Hormuz.
A conditional ceasefire between the United States and Iran has provided markets with a welcome – if tentative – reprieve following a period of heightened geopolitical tension. The agreement, set to last for two weeks, is contingent on a critical requirement
Markets have once again been on a rollercoaster this week after President Trump posted on Truth Social claiming that he had held positive and encouraging talks with Iranian authorities aimed at ending the war.
On Monday, data from China showed industrial output grew by 6.3% over January-February, up from 5.2% in December. Retail sales also picked up, rising 2.8% compared with 0.9% at the end of 2025.
Markets fell on Monday as investors reacted to developments in the Middle East and rising oil prices, which reignited concerns about renewed energy‑driven inflation. Oil briefly surged to nearly $120 per barrel, its highest level since the 2022 Russian invasion of Ukraine.
