Market Commentary: Tuesday 4th March

Markets continue to show uncertainty, with the VIX ticking higher and equities in defence mode. Headlines are once again dominated by Trump tariffs, as tariffs on China, Mexico, and Canada all went into effect at midnight in New York. Geopolitical uncertainty remains at the forefront—yesterday, Trump paused military aid to Ukraine in retaliation for last week’s clash with Zelensky, which provided a boost to European defense stocks. The only certainty at the moment seems to be more uncertainty… but only the brave will sell vol right now.

US equities have been testing fresh lows from last week’s sell-off, but with China’s more moderate response, there is some hope that a full-blown trade war can be avoided. Crypto also remains on the back foot, with Bitcoin trending lower despite Trump’s calls for a digital-asset stockpile. Bitcoin ($83,522) is now almost 22% off its all-time highs, while Ethereum ($2,078) is nearly 50% off its 2024 highs.

Later today, we have Eurozone unemployment data as we build up to Thursday’s ECB meeting, followed by Trump’s address to Congress this afternoon, where we’ll get the latest tariff update.

**For professional investors only** Any opinions, news, research, analyses, prices, or other information contained in this blog is provided as general market commentary and does not constitute (and should not be construed as containing) investment advice or an investment recommendation, or an offer of, or solicitation for, a transaction in any financial instrument. Some of this information may have been provided by third-party sources and, although believed to be reliable, it has not been independently verified and its accuracy or completeness cannot be guaranteed. No representation or warranty, expressed or implied, is made or given by or on behalf of iSAM Securities or its directors or any other person as to the accuracy, completeness or fairness of the information or opinions contained in this blog, and no responsibility or liability is accepted for any such information. As a result, any person acting on any information does so entirely at their own risk. iSAM Securities will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.