Market Outlook Winter 2025
- philmather5
- Jan 23
- 2 min read
US and global equity indices gained as big tech companies backed up aggressive valuations with further revenue growth and higher profits. Other sectors of the US equity market increased as robust consumer spending helped increase profits, and slowing inflation allowed the Federal Reserve to cut rates further. The re-election of Donald Trump as
US president also provided a boost. UK equities faded during December as economic growth remained weak, businesses turned more cautious about hiring and manufacturing slowed. There was further volatility in Japan, partly due to uncertainty in Japanese politics; however, Japanese equities markets made a gain for UK investors. European equities continue to struggle in the face of weak economic growth and lower demand for manufactured goods from the US and China.
Emerging market equities declined as a stronger US dollar weighed on sentiment and concerns about high valuations saw Indian markets fall slightly. Chinese government stimulus triggered a big rally at the end of September but they have reversed much of their gains due to weak economic data and a combative US stance on trade. Bonds have lagged as markets revised rate cut expectations in the US and UK. US economic strength and concerns over inflation from the UK Budget and the US election have also pushed down bond prices. Corporate bond markets gave back some gains to end close to their starting point as well.
This post is the opinion of Velarium Wealth and contains a document produced by FE Investments that we feel is relevant at the current time. This document has been prepared for general information only and is not guaranteed to be complete or accurate. It does not contain all of the information which an investor may require in order to make an investment decision.
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