Understanding the financial impact of recent global events

The first quarter of 2025 witnessed significant geopolitical developments, including the emergence of China's DeepSeek disrupting US artificial intelligence firms, the initiation of protectionist trade measures by President Donald Trump, and European nations increasing defence spending amid heightened regional security concerns. These events led to notable market reactions: defence stocks experienced substantial gains, automotive stocks declined, European and UK bond yields rose despite interest rate cuts, and gold prices surged to record highs above $3,000 an ounce. Additionally, the US stock...