The equity markets performed unevenly in March, with Asia and Europeseeing gains but the U.S. market falling under pressure.TheAsian exchangesprofited from the comeback in Chinese equities, and Europe's markets showed solid gains despiteuneven economic dataand aninterest rate increase.TheU.S. indices closed almostunchanged as rising energy pricesput a damper on profits.
The energy markets were able to build on the February rally, following the seizure by Iran of British sailors. The bond and currency markets had to surrender their gains from February after rising energy prices renewed fears of inflation. Following the European rate increase, the U.S. dollar lost ground against the euro and other European currencies. The European Central Bank also held out the prospect of a further rate increase in June.The Australian and New Zealand dollars likewise posted gains.
Gold and silver were able to take back their initial losses at the start of the month,while non-ferrous metals remained stable.Copper profited notably due to massive demand from China.Corn suffered major losses due to acreage coming in significantly above expectations.Bad weather led to gains in cocoa prices, while favorable production conditions for coffee and sugar led to losses.