Global markets are entering 2026 on uneven footing, with clear divergence replacing the broad-based rallies of recent years. While U.S. equities remain supported by resilient earnings, growth trajectories across regions are increasingly varied, with Japan benefiting from policy reforms and India consolidating near record highs on earnings-driven fundamentals.

Precious metals have begun to cool after a strong run, commodities are recalibrating, and equity performance is becoming more selective rather than liquidity-fuelled.

Global economic signals weakened in March, with JP Morgan’s Global PMI dropping to 50.3, indicating slowing momentum across developed markets like the US and Europe. Meanwhile, emerging markets led by India and China remained relatively strong.

A key development was President Trump’s imposition of a 10% blanket import tariff, with steeper duties for China (145%).

This triggered sharp global equity selloffs, volatility, and investor flight to safe assets like gold and bonds.

Global markets witnessed corrections amid investor uncertainty, with U.S. indices falling sharply due to trade tensions and inflation. India showed economic resilience, driven by strong rural consumption, rising capex, and stable government finances. While exports dipped, services and domestic demand remained strong.

Indian equities declined for a fifth consecutive month, but valuations are nearing historical averages.