2025 Mid-Year Outlook: Navigating Tariffs, Tailwinds, and Tech

Equity markets reached new all-time highs during the first half of the year. Global equities were up 9.47% during the first six months of the year, with a return of 6.2% and 14.1%, across US and European equities, respectively. Despite the strong performance year-to-date, the first six months were characterised by swings in volatility. Global equities overcame concerns in the AI growth trend triggered by DeepSeek, Liberation Day Tariffs, and a short-lived flare up in the Middle East. Monetary policy easing and expansionary fiscal policy drove European equity markets to outperform. Recent renewed interest in US equity markets was driven by strong performance in the technology sector as well as easing concerns on tariff impact. Fixed income markets also generated positive returns, as credit spreads tightened, locking in a return of 7.3% in global investment grade and 6.8% in global high yield.  

Click here for the full report