Domestic news is in the headlines today as the UK economy unexpectedly shrank at the start of 2025, piling fresh pressure on the Labour government over the lack of momentum since it returned to power. Gross domestic product fell 0.1% in January, hit by declines in manufacturing and construction. Chancellor Rachel Reeves is under pressure to deliver on March 26.
In European news, Russian President Vladimir Putin said he wants to discuss a proposed ceasefire in Ukraine with Trump, though he warned that any truce should lead to a long-term resolution of the war. In the US, Trump threatened to enact a 200% tariff on European wine, champagne, and other alcoholic beverages. He said he would not repeal tariffs on steel and aluminum that took effect this week, nor back off plans for sweeping reciprocal tariffs on global trading partners set to start as soon as April 2.
Market-wise, Bitcoin rose 1.9% to $81,816.53, Ether rose 2.7% to $1,892.58, the yield on 10-year Treasuries advanced two basis points to 4.29%, and Germany’s 10-year yield declined two basis points to 2.86%. Spot gold fell 0.1% to $2,984.96 an ounce, while West Texas Intermediate crude rose 1.1% to $67.26 a barrel. Data-wise, we have the University of Michigan consumer sentiment at the earlier time of 2 p.m.
Away from the markets, it is Gold Cup day—will Galopin Des Champs win this race for a third year in a row?
