The highlights:
- Global markets remained volatile in March, as investor sentiment was unsettled by ongoing US trade tensions and rising concerns about a potential global recession.
- Australian shares declined, with losses across most sectors. Technology companies were hardest hit as investors rotated into more defensive areas like utilities and safe-haven assets like government bonds. Smaller companies also underperformed, reflecting their sensitivity to global trade uncertainty.
- International shares also weakened, particularly in the US, where technology and consumer sectors fell sharply. Smaller global companies were similarly affected by the broader risk-off environment.
- Fixed interest (bond) markets held up relatively well compared to shares, supported by expectations of possible central bank rate cuts. Government bond yields remained steady as demand for safe-haven assets persisted amid ongoing tariff uncertainty.
- Credit markets were generally stable, with investment-grade corporate bonds holding firm. However, global high-yield bonds came under pressure as investors sought higher returns to compensate for increased risk.
Read the update here: March Monthly Market Update