Weekly Market Report: March 3 – March 7, 2025 and Preview of the Week Ahead
During the week commencing March 3, 2025, global financial markets experienced notable volatility, influenced by geopolitical developments, trade tensions, and economic data releases.
UK Market Performance
FTSE 100 had it’s worst week so far this year. After a strong start to the week, the index ground lower over the week closing approximately down 1.5% for the week.
FTSE 100 movers last week
| Gainers | Losers |
| Fresnillo +15.21% | Melrose Industries -20.65% |
| BAE Systems +11.85% | Rentokil Initial -14% |
| IMI +11.61% | IAG -10.31% |
| Schroders +10.59% | Informa -10.31% |
| Weir Group +9.65% | LSEG -8.18% |
| Rolls Royce +9% | Intercontinental Hotels -7.45% |
Notable Corporate Earnings
· Reckitt Benckiser: Beat earnings expectations and better than expected revenue growth driven by strong demand in it’s hygiene and health divisions.
· Ashtead Group: A slight miss but weaker-than-expected guidance and concerns over slowing equipment rental demand in the U.S. led to a sharp decline in its share price over the week.
U.S. Market Performance
S&P 500: The index recorded its worst week in six months, declining approximately 3.3%. Dow Jones Industrial Average (DJIA): The DJIA mirrored the S&P 500’s downturn, shedding about 2.5% over the week. The Dow saw a solid bounce off weekly lows on Friday after dropping over 1500 points between Monday and Friday lunchtime. Nasdaq Composite: The tech-heavy index entered correction territory, falling around 10% from its recent peak after falling close to 4% for the week
Technical Indicators: Both the S&P 500 and Nasdaq 100 indices approached their 200-day moving averages, a critical technical support level. The Nasdaq 100 closed below this threshold, raising concerns about potential further declines.
Notable Corporate Earnings
· Costco: Reported robust quarterly earnings, surpassing analyst expectations, driven by strong same-store sales growth.
· Broadcom: Delivered solid results, highlighting resilience in its semiconductor segment despite industry headwinds.
Notable Stock moves over the week
| Gainers | Losers |
| MicroStrategy +20.5% | MongoDB -27.92% |
| Moderna +15.71% | Hewlett Packard -19.34% |
| Dollar General +9.63% | Marvell Technology -18.73% |
| Zscaler Inc +8.88% | NRG Energy -15.69% |
| HCA Healthcare +8.6% | Atlassian -13.68% |
Macroeconomic News
· U.K.: Manufacturing PMI contracted for the second consecutive month, raising fear of a slowdown.
· U.S.: The Consumer Confidence Index dropped to 95.7, signalling waning consumer optimism.
· On Friday, Federal Reserve Chair Jerome Powell stated that “despite elevated levels of uncertainty, the U.S. economy continues to be in a good place,” although signalling a cautious approach to future interest rate decisions. His comments helped U.S. shares rebound from early declines, with major indices closing higher on Friday
Week Ahead: 10th- 14th March, 2025
Market Open: Major European Indices have opened relatively flat. With the FTSE 100 shedding 40 points in the first hour of trade, down 0.46%, and the Euro STOXX50 index down 0.21% in early Monday trade. Futures contracts for the S&P 500, NASDAQ and the Dow are all in the red to start off our week.
Market Themes to Watch Next Week (commencing 10th March, 2025)
1. Key Sectors’ Performance
· Tech Stocks: Shifts in investor sentiment following AI and cloud computing earnings may drive volatility.
· Retail & Consumer Discretionary: Earnings from Target, ULTA, and Dollar General will reflect consumer spending power.
· Industrials & Commodities: Updates from shipping and infrastructure firms will highlight global demand trends.
· European Defence Stocks: European efforts to reduce reliance on U.S. military protection will continue to fuel gains in the aerospace and defence sectors of the FTSE 350 and across Europe. Rheinmettal reports next week.
2. Market Volatility & Tariff Impacts
· Investors will monitor the impact of recent tariff announcements on industrial stocks, global trade, and consumer goods companies.
3. U.S. Inflation Data & Federal Reserve Outlook
· The Consumer Price Index (CPI) report could influence Federal Reserve policy and impact interest rate expectations.
4. U.K. Economic Growth Data
· GDP figures for the U.K. could signal recession risks or economic resilience. Investors will assess how economic conditions affect consumer spending and housing.
5. European Equities, ECB Policy & German Debt Brake
· The European Central Bank’s (ECB) stance on inflation and interest rates will shape eurozone market sentiment.
· Meanwhile, the incoming German Chancellor is seeking to loosen Germany’s government spending rules to increase spending on defence programs and infrastructure.
Upcoming Economic Events
U.K. GDP Estimate: The preliminary GDP estimate for Q1 2025 is due on 11th March, offering a gauge of economic momentum.
UK Retail Sales and House Price Data: Midweek sees the release of the BRC Retail Sales Monitor and the RICS House Price Balance.
U.S. Inflation Data: The Consumer Price Index (CPI) for February is scheduled for release on 12th March. A higher-than-expected CPI could disrupt expectations of Federal Reserve easing and trigger market volatility.
U.S. Retail Sales: February retail sales data will be published on 13th March, providing insights into consumer spending trends.
Key Earnings Reports
Technology & Cloud Computing
· Oracle Corporation (ORCL) – Enterprise Software & Cloud Services (10/3). Key will be Oracle’s cloud computing growth, particularly in AI-driven services
and competition with Microsoft Azure, Google Cloud, AWS and SAP. Investors will also focus on updates regarding enterprise software demand and database licensing revenue trends.
· Adobe Inc. (ADBE) – Creative & Digital Experience Software (12/3) As competition has intensified for Adobe in the past few years, Adobe’s subscription growth in Creative Cloud and AI-driven tools like Adobe Firefly will be key. Investors will also assess how AI-powered generative design features are monetized, along with enterprise demand for Document Cloud and Experience Cloud.
· DocuSign, Inc. (DOCU) – Electronic Signature & Contract Automation (12/3) Investors will be looking for strong billings in their core e-signature business and growth in enterprise adoption of their AI driven Intelligent Agreement Management (IAM) tools. Investors will also evaluate whether DocuSign can provide a positive forward guidance while transitioning their business toward a cloud based IAM platform undertaking significant R&D.
Healthcare & Biotech: Innovation in a Defensive Sector
· BioNTech SE (BNTX) – Biotechnology & Immunotherapies (10/3) The focus will be on post-pandemic vaccine revenue and BioNTech’s pipeline for cancer immunotherapies and mRNA-based treatments. Reports of a new coronavirus variant with potential pandemic properties saw a renewed interest for Moderna shares last week.
Global Trade
· ZIM Integrated Shipping Services Ltd. (ZIM) – Global Shipping & Logistics (13/3) With global trade uncertainty, freight rates and container demand are good data points to derive actual impact. Investors will assess potential logistics disruptions from supply chain bottlenecks and gain forward looking perspective on geopolitical tensions.
Infrastructure & Industrials
· Crown Castle (CCI)– Communications Infrastructure (12/3) Crown Castle’s earnings will provide key insights into the health of the telecommunications infrastructure sector, particularly in 5G expansion and data centre investments
· Balfour Beatty (BBY) – Construction & Infrastructure Services (12/3) Balfour Beatty’s earnings will be a barometer for U.K. and U.S. infrastructure spending trends. Investors will monitor order book growth and project backlog stability.
· Rotork (ROR) – Industrial Flow Control Solutions (11/3) Rotork’s performance depends on infrastructure spending and industrial demand. Investors will look for insights on its order book and energy sector exposure.
5. Consumer Discretionary & Retail
· ULTA Beauty, Inc. (ULTA) – Retail & Beauty Sector (13/3) ULTA’s earnings will provide insight into consumer discretionary spending trends for skincare and luxury beauty.
· Deliveroo (ROO)– Food Delivery (13th March)- Investors will be keen to see how Deliveroo aligns with industry trends following Just Eat Takeaways 36% earnings bump driven by growth in UK & Ireland and solid growth from China’s Meituan.
· Kohl’s Corporation (KSS) – Department Store Retail (14/3) Investors will assess holiday quarter performance, particularly sales trends in apparel and home goods. Updates on its store revamp strategy and private-label growth will be of interest.
· Dollar General Corporation (DG) – Discount Retail (14/3) Dollar General benefits from consumers trading down in a high-inflation environment. Key areas of focus include same-store sales growth, margin trends, and the company’s strategy in rural market expansion.
6. U.K. Financials & Real Estate
· Legal & General Group (LGEN) – Insurance, Pensions & Asset Management (12/3) Investors will assess pension fund performance and institutional investment flows.
· Persimmon (PSN) – Residential Property Development (11/3) With higher mortgage rates affecting U.K. housing demand, Persimmon’s sales and pricing power will be in focus. Investors will also look for guidance on building material costs and government policy impacts.
· Bridgepoint Group (BPT) – Private Equity & Alternative Investments (13/3) Bridgepoint will reveal Private Equity deal flow trends and capital deployment strategies. Investors will be keen on updates about fundraising and exits. However, will public market volatility throw caution on private market liquidity and valuations?
· TP ICAP Group (TCAP) – Financial Intermediation Services (11/3) TP ICAP’s earnings will reflect trading volumes across global financial markets. Interest rate volatility and increased commodity trading activity could impact earnings positively.
Next week’s market action will again be a difficult one to digest as investors will gaze to the immediate impact of the 24-hour news cycle for signals on market direction. All eyes will be on U.S. inflation data for its potential influence on Federal Reserve policy, while the U.K.’s GDP report will provide insight into the country’s economic resilience. Additionally, European markets will be shaped by ECB policy decisions and Germany’s proposed fiscal shifts, which could have broader implications for spending on defence and infrastructure.
Last week’s market declines, driven by growing concerns over the AI boom’s sustainability and triggered by a potential global trade war and increased tariff tensions, have heightened investor caution heading into the new week. Will global retaliation or new US tariffs continue to spook markets? Where will the CPI print come in this month? What of consumer and manufacturing data? Will there be a continued slide in tech stocks or will investors buy the dip? What insights from key earnings from Oracle and Adobe provide into corporate AI investment trends? With continued market sensitivity to short term news flow, next week’s developments will be crucial in shaping near-term market sentiment.
DISCLAIMER This article is for information purposes only and no part of it or its contents are deemed to be nor should be taken as advice. It does not constitute recommendations to buy or sell any securities mentioned. Past performance of investments is no guide to future returns and you may get back less than you invested. Capital at Risk.