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Daily Update — March 18, 2025

Climate Disruptions on Value Chains; Big Tech at CERAWeek; and US Equities Decline

Today is Tuesday, March 18, 2025, and here’s your curated selection of essential intelligence on global markets from S&P Global. Subscribe to be notified of each new Daily Update.

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Energy Transition & Sustainability

Sustainability Insights Research: Ripple Effect: How Value Chains Compound Sector Exposures To Physical Climate Risks

 

Extreme weather events are worsening and chronic climate risks are increasing, leading to significant economic repercussions. In 2024, global economic losses due to these climate hazards reached $320 billion, a notable increase from the inflation-adjusted $268 billion recorded in 2023. This rise in losses surpasses the inflation-adjusted averages over the past 10 and 30 years, according to global reinsurer Munich Re, highlighting a troubling trend in the frequency and severity of climate-related incidents.

 

As extreme weather and chronic climate change escalate, companies and governments may need to allocate more resources to mitigate risks. The implications of physical climate risks extend beyond an entity's direct assets and operations. The interconnectedness of the value chain means that disruptions — whether from commodity shortages, geopolitical tensions or logistical challenges — can have far-reaching effects, impacting downstream sectors reliant on critical goods and services. 

 

Learn more about the elements of climate risk amid the energy transition in S&P Global Sustainable1’s upcoming webinar, Capturing $60T energy transition opportunities, while managing $25T climate risks.

Artificial Intelligence

Listen: At CERAWeek, big tech and big energy cozy up

 

The tech industry came in hot at S&P Global’s CERAWeek energy conference in 2025 as the conversation shifted to boosting the energy industry for AI development from decarbonization and energy security.

 

In this episode of “Oil Markets,” S&P Global Commodity Insights Co-President Dave Ernsberger joined Americas oil news director Jeff Mower to recap the key themes and developments from the conference, including the Trump administration's energy and geopolitical strategies, the industry's outlook on investment and production, and the prevalence of decarbonization.

Economy

Upcoming March flash PMI data in focus as US equities fall into correction

 

US equity prices have experienced a notable decline from all-time highs in mid-February, signaling a significant shift in investor sentiment. Following the election of President Donald Trump, optimism initially surged, but there has been a downturn in recent weeks due to tariff announcements and concerns regarding the consequences of new policies on the economy. According to the S&P Global Investment Manager Index survey, there has been a marked decrease in risk appetite among US equity investors, indicating one of the most risk-averse periods in the past five years.

 

Economic reports, including S&P Global’s flash Purchasing Managers’ Index (PMI) released Feb. 21, have further fueled these concerns and revealed a slowdown in US business growth. The flash PMI data highlighted declining sentiment and rising costs, raising fears of stagflation or recession. In contrast to more favorable PMI reports for Europe and Japan, the perception of the US economy has shifted, with investors viewing it as a greater drag on US equities than the broader global economy. 

 

Monitor the health of global economies and anticipate changing market trends with the Purchasing Managers’ Index. 

In case you missed it

  • The EU's Carbon Border Adjustment Mechanism could cause export losses of up to $4.7 billion for Ukraine over the 2026–2030 period.
  • The shipping industry faces mounting pressure as the US, China, Canada and EU engage in reciprocal tariff measures, with dry bulk carriers likely to be the first sector affected as markets grapple with volatility.
  • The Indian government proposed establishing a coal trading exchange that would allow companies to buy and sell domestically produced coal amid a surge in domestic production.

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