We have reached the end of a tumultuous first quarter for global markets, from which the key takeaway has been the extremely weak showing of previously all-conquering US stocks.

Martin Gamble looks at the latest developments from across the Atlantic in this issue. As the table shows, there have been winners as well as losers in the first three months of 2025.

The resurgence of the German stock market is one of the big stories as investors warm to a policy agenda of spending significant sums on defence and infrastructure.

The performance of European defence names, and Germany’s Rheinmetall (RHM:ETR) in particular, has been nothing short of astonishing. Kudos to anyone predicting these trends as the bells tolled to ring in the New Year.

The need for greater European self-reliance in the face of the Trump administration’s dramatic shift in foreign policy has helped the wider region, although not to the same extent as seen in Germany. Ian Conway reports this week on the significant capital flows moving into the European infrastructure sector.

Chinese stocks have also bounced from depressed levels, partly helped by the emergence of the Deepseek AI model and accompanying renewed enthusiasm for the country’s tech names but also by hopes for further stimulus efforts on the part of Beijing.

These themes are represented at a stock level with Chinese electric vehicle play Xpeng (9868:HKG) and e-commerce and technology firm Alibaba (BABA:NYSE) among the big global winners.

UK-listed precious metals miners Greatland Gold (GGP:AIM) and Fresnillo (FRES) have also shone as gold’s safe haven credentials have helped drive it to record highs.

However, the increased volatility and unpredictability in the markets make strong arguments for a diversified approach – a topic we will return to in more depth in an upcoming issue.

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