Global Markets Weekly Update - March 13, 2026
U.S. Market Overview
Major U.S. stock indexes declined for the third consecutive week, primarily due to ongoing conflict in the Middle East affecting oil prices. The S&P MidCap 400 Index and Dow Jones Industrial Average fell by 2.03% and 1.99%, respectively, while the Nasdaq Composite dropped 1.26%.
Economic indicators showed the core PCE price index rose to 3.1%, the highest since early 2024, while GDP growth for Q4 2025 was revised down to 0.7% from 1.4%.
Housing Market Insights
Existing home sales increased by 1.7% in February, with the median price rising to $398,000. The Housing Affordability Index improved for the eighth month, although transaction activity remains below pre-pandemic levels.
European Market Overview
The pan-European STOXX Europe 600 Index fell by 0.47%. The ECB signaled readiness to manage inflation amid rising energy prices, while German factory orders dropped sharply by 11.1% in January.
UK economic growth stalled in January, with no growth reported, contrary to expectations of a 0.2% increase.
Japan Market Overview
Japan's Nikkei 225 Index fell by 3.24% as investors reacted to energy market volatility. The yield on 10-year Japanese government bonds rose to 2.22% amid concerns over inflation and a weaker yen.
Japan's GDP growth for Q4 2025 was revised up to 1.3%, driven by increased business investment.
China Market Overview
Chinese equity markets showed mixed results, with the CSI 300 Index up 0.19%. Consumer inflation rose to 1.3%, the fastest pace in over three years, while exports surged by 21.8% in early 2026.
Chinese technology stocks gained traction due to the emergence of an open-source AI agent, although caution was noted from some financial institutions regarding its use.
Geopolitical and Energy Market Insights
The conflict in the Middle East has raised concerns about oil supply stability, leading to significant price increases. The International Energy Agency coordinated an emergency release of reserves to stabilize markets.
Governments worldwide are implementing measures to mitigate the impact of rising energy costs, with Brazil and Indonesia among those taking action to support consumers.