The major global equity indices saw volatile moves over the past week as uncertainty around tariffs and economic data weighed on markets. After starting the week on a positive note, stocks reversed course mid-week and sold off sharply on Friday to end the week lower across the board.

In the U.S., the S&P 500 was down another few percent over the last week leaving it down 5% for the first quarter. The Nasdaq finished the quarter down almost 10% while the so called Magnificent 7 stocks were down more than 15% in aggregate with Tesla falling by the most. European equities also struggled over the last week but are still up over 5% so far this year in local currency terms and some 10% in AUD terms given the relative weakness of the Aussie Dollar. Emerging markets, ex-US Small Companies, the FTSE 100 and Japan have all also eked out gains so far this year despite modest falls over the last week. 

The catalyst for the latest selloff oFriday appeared to be weaker than expected U.S. consumer data, with personal spending rising just 0.1% in February and prior months revised lower. This, combined with an uptick in the core Personal Consumption Expenditures (PCE) inflation reading to 2.8% year-over-year, raised concerns of a somewhat stagflationary environment taking hold.

Bonds rallied on the weak economic data despite an unexpected uptick in inflation as measured by the Fed's preferred PCE Deflator, with U.S. 10-year Treasury yields falling 11 basis points on Friday to 4.25%. However, yields rebounded to start the new week as the market digested these conflicting (or perhaps stagflationary) signals. European bond yields also ticked higher as expectations for an April European Central Bank rate cut were pared back slightly.

In commodity markets, oil prices surged over 3% to start the week on concerns around Russian supply after President Trump threatened secondary sanctions on Russian oil importers. Gold continued its ascent, hitting a new record high of $3,162/oz amid the heightened uncertainty.

Looking ahead, all eyes will be on Wednesday's "Liberation Day" announcement from President Trump, where new tariffs are expected on U.S. trading partners. The high degree of uncertainty around the scope of potential tariffs is likely to keep markets on edge in the coming days.