Protectionist threats issued by Donald Trump in early March have largely dominated the news this month. The US president is committed to reducing the US trade deficit, mainly with China. After a dangerous escalation, both sides apparently sought to soften their language and engage in a negotiation process. Beyond the rhetoric and intentions, financial markets have taken stock of a real threat to global growth, even a possible trade war, and have reacted accordingly. In the markets risk aversion has been accentuated by the business slowdown in Europe. PMI estimates show reduced dynamism. They're still running above 50, but somewhat down from the highs reached at the year's start. What's more, the decline in technology stocks, hit by concerns over the durability of the GAFA business model, has amplified equity market volatility. News on the Central banks has finally shifted into the background, while some analysts were anticipating possible surprises. Although the Federal Reserve hiked its rates 25 bps, as expected, in the end it did not announce any acceleration in its key rates increments, despite an increase in growth and inflation expectations for 2018 and 2019. No surprise either from the ECB, which has left its monetary policy unchanged. In this climate, long-term rates fell an average 15 bps while credit spreads widened in Europe and the United States. Investment grade credit closed the month in slightly negative territory, while high yield credit — less sensitive to long-term rates — recorded a performance of -0.21%.