USA

Year to Date (YTD)

Commentary: In recent weeks, the Trump administration announced multiple new tariffs on imported goods into the US, ranging from 10% to over 100%. This surprised many governments, leading to multiple countries calling for negotiations to avoid such tariffs. China, however, imposed retaliatory tariffs on US goods. On 9 April, President Trump paused the tariffs for 90 days to allow for further discussions with markets witnessing significant volatility through the period. Through the month of March, it was noted that the US economy added 228K jobs, whilst the unemployment rate stood at 4.2%. The inflation rate went down to 2.4%, yet this is expected to increase in the coming months as the “Trump tariffs” are enacted. US equity markets saw sharp swings through this period, with the S&P500 down by 10% YTD.

Europe & UK

Year to Date (YTD)

Commentary: The ECB has cut its benchmark interest rate by a quarter-point to 2.25%, following Trump's announcement of extensive tariffs on most US trading partners on 2 April. The ECB cited deteriorating growth prospects due to rising trade tensions and noted that the adverse market response could tighten financing conditions for businesses and consumers. It was highlighted that new trade barriers for Euro-area exporters will be leading to a negative sentiment on international commerce, financial market tensions, and geopolitical uncertainty on business investment. Inflation edged down last month to 2.2% yet the ECB noted that the full effect on inflation would become clearer over time. Despite the heightened volatility, the Eurostoxx 50 is trading positively YTD.

Malta

Year to Date (YTD)

Commentary: The latest report issued by the Maltese Central Bank noted how the economic growth locally eased lately, with figures aligning with the long-term average since January 2000. Industrial production and retail trade both rose at a slower pace compared to previous quarters, yet the unemployment rate remained steady at 3.0%. Inflation rates showed an upward trend but are still hovering around the 2.0% mark. Sectoral confidence indicators presented a mixed picture, with declines in the services and construction sectors, while consumer confidence remained positive. The tourism sector experienced another positive quarter and largely remains an important component in supporting the local economy. The MALTEX is now trading 3.1% up YTD.