Macro Movers & Shakers
| Growth | Inflation | Policy | |
|---|---|---|---|
| US | Business activities are off to a rough start as business investments, consumer spending and homebuilding were notably weak at the start of the year as Trump policies raise concerns about the broader economy. Consumer confidence has waned recently with rising inflations expectations over the impact of tariffs increases. | The annual inflation rate in the US eased to 2.8%, lower than expected. Tariffs are typically inflationary, and the data does not incorporate what’s to come. | Federal Reserve turned cautious on further rate cuts amid inflation concerns arising from Trump’s uncertain policies and inflation expectations rising. |
| Europe | The U-turn in German fiscal policy and the EU proposal of a ReArm Europe are game changers and raise the prospects for higher potential growth in the region. | The annual inflation rate in the Euro Area dipped to 2.2% in March 2025, down from 2.3% in February 2025, primarily due to reduction in energy costs and slowing service inflation. | European Central Bank remains on the easing path, cutting interest rates by 25 basis points twice since beginning of the year. This comes amid lackluster economic growth, and as the prospect of tariffs on imports to US looms. |
| Asia | In China, consumption and industrial production grew faster to the start of the year, boosting consumer spending and investment. It will adopt a proactive fiscal policy and speed up the implementation of pro-growth measures. | Inflation remains subdued across Asia, with China leading the way, its consumer prices index (CPI) falling into negative territory for the first time since last year. | Asian central banks lean dovish in anticipation of uncertain trade policies. China’s National People’s Congress (NPC) set targets that are largely in line with market expectations, GDP growth target at ~5%. |
| Japan | The market was initially down following the sell-off in late February 2025, fueled by concerns over US tariffs. It later rebounded in mid-month as the sell-off was deemed excessive, together with news of Berkshire Hathaway adding to its positions in Japan’s trading companies | The annual inflation rate fell to 3.7% in February 2025, down from the previous month. Spring wage negotiations are expected ~ 5% hike. | The Bank of Japan held its policy rate unchanged as expected in its March 2025 policy meeting. |
| RISKS |
|---|
| - Increased trade tensions as US impose higher tariffs, potentially leading to tit for tat from trading partners - Changes to geopolitical conflicts - Higher inflationary pressures (from policies and/or war), which keeps interest rates higher for longer, resulting in global economic slowdown - Policymakers in China fail to deliver on stimulus expectations, and the crisis of confidence deepens |
Sensible Considerations
Valuation based on Price-to book ratio.
At a Glance | General Product Suite
*This is an actively managed ETF
**CPFIS Funds: LionGlobal Short Duration Bond Fund Class A SGD (Dist), LionGlobal Singapore Fixed Income Investment Class A SGD, Infinity Global Stock Index Fund SGD, Infinity Global Stock Index Fund Class C SGD, Infinity U.S. 500 Stock Index Fund SGD, LionGlobal Asia Pacific Fund SGD, LionGlobal Japan Growth Fund SGD and LionGlobal Japan Growth Fund SGD-Hedged.
All data are sourced from Lion Global Investors as of 31 March 2025, unless otherwise stated.
Download PDF**CPFIS Funds: LionGlobal Short Duration Bond Fund Class A SGD (Dist), LionGlobal Singapore Fixed Income Investment Class A SGD, Infinity Global Stock Index Fund SGD, Infinity Global Stock Index Fund Class C SGD, Infinity U.S. 500 Stock Index Fund SGD, LionGlobal Asia Pacific Fund SGD, LionGlobal Japan Growth Fund SGD and LionGlobal Japan Growth Fund SGD-Hedged.
All data are sourced from Lion Global Investors as of 31 March 2025, unless otherwise stated.
