Markets recalibrate amid shifting currents
During the review period, financial markets had to adjust to shifting currents. Even though markets initially appeared calm on the surface, there were significant shifts under the surface as investors rotated away from previously high-performing assets. Volatility began to creep up, exacerbated by the conflict in the Middle East in early March.
Global equity markets saw regional and sectoral shifts in late 2025, with investors moving away from US large cap and growth stocks. European and Japanese equities posted gains, while emerging market economy (EME) equities saw an even greater boost. Despite solid earnings, concerns over artificial intelligence (AI) spending and disruption weighed on richly valued technology companies. Value and small cap stocks outperformed. While index volatility rose, it was eclipsed by significantly greater individual stock volatility.
Articles
Media
Media briefing on the BIS Quarterly Review, March 2026
Hyun Song Shin summarises the March 2026 BIS Quarterly Review and, along with Gaston Gelos and Frank Smets, answers journalists' questions about market developments, the state of the global economy and fiscal policy. Read more here.
Evolving approaches to monetary policy communication in the face of uncertainty
Matthieu Chavaz provides an overview of the challenges central banks face and the tools they can use to maintain clarity, credibility and accountability in the face of uncertainty.
The views expressed here do not necessarily reflect the views of the BIS member central banks.