Weekly Market Round-Up: Fed Signals, Gold's Surge, and Asia's Strategic Moves Shape Global Sentiment

7 Key Market Events to Watch: March 17–22, 2025

Here are the most important developments this week that global investors should pay attention to — with a focus on the U.S., Europe, and Asia:

United States

1. Fed Rate Decision and Economic Projections (FOMC – March 20)

The U.S. Federal Reserve is set to announce its latest interest rate decision, with markets watching for clues on when rate cuts might begin. While no change is expected this time, investors will closely examine the updated dot plot and economic forecasts to gauge the Fed’s outlook on inflation, growth, and employment.

2. U.S. Housing Market Shows Signs of Weakness

Major homebuilder Lennar reported strong earnings but issued a cautious outlook, citing high mortgage rates, inflation, and declining affordability. Home prices and new orders are softening, signaling potential pressure on the housing sector going forward.

3. Gold Surpasses $3,000 as Safe-Haven Demand Surges

Gold prices made headlines by breaking above $3,000 per ounce for the first time ever. The move reflects growing investor anxiety over geopolitical risks, trade tensions, and central bank policy uncertainty, driving demand for safer assets.

Europe

4. Heathrow Airport Disruption Weighs on Travel Stocks

A fire-related power outage at Heathrow Airport, one of Europe’s busiest, disrupted thousands of flights and sent airline and hospitality stocks tumbling. Companies like IAG (British Airways) and Whitbread (Premier Inn) were hit hard, reflecting investor concerns over revenue loss and operational risk.

5. UK Government Borrowing Misses Forecasts

The UK posted a £10.7 billion budget deficit in February, well above the expected £6.6 billion. With fiscal pressures mounting, markets are bracing for possible tax hikes or spending cuts, particularly as the Spring Budget draws scrutiny.

Asia

6. Chinese Equities Rebound on Policy Support:

Chinese markets saw renewed buying interest as authorities pledged more policy support for consumption and technology sectors. The CSI 300 index turned positive for the year, helped by rallies in consumer and green energy stocks amid government backing.

7. Oil Market Focus Shifts to Asia Amid Pricing War:

A price war for crude oil market share is brewing in Asia, as Saudi Arabia and Russia compete for exports to China and India. While Russia offers discounts amid sanctions, Saudi Arabia is cutting official prices to retain share. The outcome may impact global oil prices and inflation trends in the region.

Investor takeaway

This week is all about policy signals, global growth risks, and sector-specific developments. Keep a close eye on the Fed’s message, European fiscal stability, and Asia’s evolving demand dynamics.