Market update

2025 will be remembered as a year in which uncertainty and strong investment performance were not mutually exclusive.

Global markets were a mixed bag in November, pausing after several months of strong gains. The technology sector was challenged, recording its biggest decline since March 2025.

Continued enthusiasm for AI and a US-China trade deal easing tariffs and rare-earth limits boosted global equities for a second month in October.

Global equities moved higher in September with most major indices making positive returns, with US equities leading the way returning 4% (in sterling terms). This meant it was another strong quarter for risk assets as market enthusiasm around AI gained momentum, trade tensions were eased and we saw the Federal Reserve cut rates for the first time since December 2024.

Following a strong run in May and June, markets maintained their upward momentum in July, with risk assets once again delivering healthy returns. While concerns around inflation and government borrowing remain, investors found several reasons to stay positive on the outlook.