Navigating cross-asset volatility in turbulent times

We explore how recent political and economic disruptions - such as tariff hikes and shifting central bank policies - have triggered sharp volatility across equities, bonds, and commodities. 

• Cross-asset awareness is critical: Asset classes no longer move in isolation—investors must assess global correlations and sector-specific sensitivities.
• Curated data tools empower decision-making: Platforms like LSEG Workspace and StarMine cut through the noise to surface actionable insights.
• Agility is the new alpha: From scenario modelling to integrated analytics, fast, informed action gives investors the edge in volatile markets.

In April 2025, investors were reminded just how quickly market sentiment can shift. Following a wave of tariff announcements from the Trump administration, global markets went into a tailspin. Over just two trading days, nearly $6.6 trillion was wiped from U.S. stock market value, only for the S&P 500 to rebound by 9.5% the following day, its biggest one-day jump in over a decade.

These sharp moves reflect more than just knee-jerk reactions. They speak to the deep uncertainty surrounding global trade policy, inflation, and central bank trajectories. Yields on U.S. Treasuries have swung sharply as investors reprice inflation risks and reassess the Fed’s likely path. Meanwhile, spillover effects continue to rattle European equity markets and impact commodity prices, creating a knock-on effect across currencies and asset classes.

Importantly, the current volatility is being driven as much by political agendas as by underlying economic fundamentals. For agile investors, this creates not just risks to manage, but opportunities to seize. Particularly in sectors, regions, and asset classes where moves are more sentiment-driven than justified by earnings or macro trends.

The result is a global market environment where staying informed isn’t enough. Investors must know what matters, when, and how to act decisively, turning dislocation into opportunity.

Looking at equities in isolation no longer fits the reality of today’s markets. Equity volatility is being shaped by a wide range of forces across asset classes: commodity price swings, currency moves, shifting rate expectations, and geopolitical tension all feed into equity valuations.

Take the growing divergence between U.S. and European equities. While the S&P 500 may rise on tech strength, European indices can falter due to fears of retaliatory tariffs or energy price shocks. These aren’t separate stories; they’re interlinked signals that demand a broader view.

Understanding cross-asset correlations - such as how a tariff announcement on country X could impact sectors like autos, semiconductors or consumer goods - is becoming core to successful equity investing. The ability to anticipate and quantify sector sensitivities to macro or political shocks is fast becoming a strategic advantage.

With so much data and news breaking every day, the ability to stay focused is more important than ever. Investors don’t just need access to information, they need help making sense of it, fast.

To meet that need, many are turning to curated intelligence tools: pre-market briefings, regional outlooks, and thematic summaries that highlight what really matters for the day ahead. LSEG’s Morning Bid is one example of this; a resource that helps investors cut through the noise by surfacing the stories most likely to move markets across regions.

Increasingly, decision-makers are relying on granular, data-driven signals to sharpen their focus. Platforms like StarMine offer insights into changes in analyst sentiment, rising default probabilities, earnings estimate revisions, disconnects from fundamental valuations and other indicators that can reveal hidden opportunities during periods of dislocation.

In volatile times, workflows that combine real-time news with sector correlation analysis, earnings forecasts, and risk models give investors a clearer view of where mispricing and opportunities might emerge. The goal isn’t just to manage risk—it’s to move early when others are still reacting.

Recognising what’s happening is one thing. Acting on it, especially under pressure, is another.

A single policy move like the recent tariff shake-up can have complex ripple effects across sectors, regions, and asset classes. Understanding those dynamics quickly is crucial. But so is being able to model different scenarios, estimate sector exposure impacts, and adjust strategies across teams in real time.

This is where integrated decision-making environments come into play. LSEG Workspace, for example, brings together real-time news, market data, analytics, and collaboration tools so investors can analyse and adapt without switching between systems.

That kind of agility is becoming essential. Whether it’s recalibrating exposure to sensitive sectors, reallocating to relative beneficiaries, or hedging against currency impacts, the ability to seamlessly move from insight to action is what allows investors to capitalise, not just cope.