Your Weekly Money Moves - 11 March 2025

A 6-minute market update

Stock Take

Stock markets continued to face pressure last week, after Trump continued his ‘will they, won’t they’ approach toward tariffs.

Over the past seven days, the US government placed an extra 10% tariff on Chinese imports on top of existing tariffs. It also said it would be taxing Canadian and Mexican imports at 25%, only to declare an exemption for goods compliant with the United States–Mexico–Canada Agreement (USMCA) until 2 April. The USMCA is a free trade deal Trump signed in his first term, covering a wide variety of industries from automobiles to dairy.

In return, the Canadian government announced its own series of tariffs on US goods. At the same time, the Chinese government also introduced tariffs on US goods it can source from elsewhere, such as meat and logs.

This uncertainty was compounded by the Federal Reserve Bank of Atlanta, which revised its first quarter projections for US GDP to -2.4% on Thursday. This compared to a projection of a -1.5% drop a week earlier, and positive GDP growth in projections from earlier this year.

With so much uncertainty, it is unsurprising that markets have struggled of late. US markets are currently having a particularly tough time, with both the S&P 500 and the NASDAQ finishing the week down over 5%.

However, Joe Wiggins, SJP’s Investment Research Director points out: “It is important to remember that financial markets are noisy and unpredictable over short-run horizons, a fact exacerbated by some of the extreme policy uncertainty that surrounds the Trump administration.

“Attempting to make decisions based on the near-term fluctuations of markets is a dangerous and unreliable game, and one that comes with particularly acute risks in the current environment. Taking a long-term view based on fundamentals and supported by sensible diversification is the best way to navigate this backdrop."

Sticking with North America, Mark Carney won the race to succeed Justin Trudeau as Canadian prime minister over the weekend. In the UK, Carney is probably best known for his stint as Bank of England governor between 2013 and 2020. As prime minister, he’ll face two clear immediate priorities: managing the tariff spat with the US, and preparing for a general election, due to take place on or before 20 October this year.

In his opening his address, Carney suggested he planned to be strong on the former, saying: “We didn't ask for this fight, but Canadians are always ready when someone else drops the gloves."

In the UK, which has so far remained out of the tariff headlights, the FTSE 100 fell last week. This was partly due to concerns over the impact that a trade war could have on the global economy.

There was a more positive story for the rest of Europe, where equities had another positive week largely driven by defence stocks. More broadly, the German market jumped in reaction to the announcement of a bumper spending pledge. An overhaul of the borrowing rules will create a €500bn infrastructure fund and allow for increased defence spending.

Hetal Mehta, Head of Economic Research at SJP, commented: “Germany is in the midst of a huge and historic policy u-turn. After many years of espousing fiscal prudence, the spending package announced is unprecedented in size and could amount to as much as 3% of GDP on an annual basis. The path to approval is not easy - the lame duck government must rush this through while it has a two-thirds majority and a challenge via the Constitutional Court cannot be ruled out. A key question for investors is whether other countries in Europe can similarly rise to the challenge posed by geopolitical tensions.”

Wealth Check

We believe financial planning and advice is a family affair.

By having a clear idea of what’s right for your family, and for you, it’s possible to create a financial plan that works for everyone and lasts beyond your lifetime.

This financial to-do list covers the ten steps you can take right now to begin planning for and protecting your family and its assets.

• Think about both your short and long-term future plans. Do you have some immediate goals that you want to save for, such as a family holiday, a wedding, or school fees? Or life events that may seem a long way off, such as reducing your work hours or helping pay for social care.
• Work out how much you’re worth. List how many pension pots you might have if you’ve changed jobs, find share certificates, check in on your ISAs or savings accounts.
• Earmark an emergency, easy-to-access cash fund just in case life throws you a curve ball. Ideally enough to keep you afloat for six months.
• Start protecting the people that you care about, your family home and your lifestyle. An insurance policy could literally be a lifesaver for your family.
• Encourage your children to get into good money habits from an early age by encouraging them to save and explaining what budgeting means.
• Start thinking about the legacy you want to leave, and to whom. Hopefully that time is a long way off, but small steps, taken early, can make a big difference to your family.
• Make a Will, especially if you have children, or your family situation changes. It’s probably the most important legal document you’ll ever make to secure your family’s future.
• Set up a Power of Attorney (PoA). A PoA means that someone you trust can make financial or welfare decisions on your behalf if you lose mental or physical capacity.
• Consider what means most to you and your family. Understanding your personal values will help you set clear goals.
• Talk to your family about your short-term and long-term plans and involve them in your decisions and plans.

The value of an investment with St. James's Place will be directly linked to the performance of the funds you select, and the value can therefore go down as well as up. You may get back less than you invested.

Will writing and Powers of Attorney involve the referral to a service that is separate and distinct to those offered by St. James's Place and are not regulated by the Financial Conduct Authority.

In The Picture

We’re delighted to share the 122nd edition of The Investor, full of invaluable financial insights!

This edition tackles the importance of optimism even when headlines seem daunting and how expert guidance can help when making big financial decisions. SJP’s Joe Wiggins sheds light on common investor pitfalls and there’s an inspiring interview with finance expert and author Bola Sol.

You'll also find some essential tips for preparing for retirement in your final working years and explain the differences between active and passive investing to help you understand your options better!

Speak to us today to access to the full edition or enquire about subscribing.

The information contained is correct as at the date of the article. The information contained does not constitute investment advice and is not intended to state, indicate or imply that current or past results are indicative of future results or expectations. Where the opinions of third parties are offered, these may not necessarily reflect those of St. James's Place.

Source: London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). ?LSE Group 2025. FTSE Russell is a trading name of certain of the LSE Group companies.

“FTSE Russell?” is a trade mark of the relevant LSE Group companies and is used by any other LSE Group company under license. All rights in the FTSE Russell indexes or data vest in the relevant LSE Group company which owns the index or the data. Neither LSE Group nor its licensors accept any liability for any errors or omissions in the indexes or data and no party may rely on any indexes or data contained in this communication. No further distribution of data from the LSE Group is permitted without the relevant LSE Group company’s express written consent. The LSE Group does not promote, sponsor or endorse the content of this communication.

? S&P Dow Jones LLC 2025; all rights reserved

Source: MSCI. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indices or any securities or financial products. This report is not approved, endorsed, reviewed or produced by MSCI. None of the MSCI data is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such.

SJP Approved 10/03/2025