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Our monthly portfolio positioning commentary.
Markets delivered positive returns in August, supported by resilient economic data and strong company earnings. Japan was a standout, with equities rising strongly after the conclusion of a new trade deal with the US and GDP growth that exceeded expectations. These developments added confidence to the broader outlook for global growth.
Market Update & Portfolio Positioning
July 2025 Review
Global markets were supported by positive developments last month. The US has made trade agreements with Japan, the EU, and Vietnam which bolstered investor confidence and lifted equity markets. Furthermore, roughly 80% of US companies exceeded Q2 earnings expectations. Emerging Markets also benefited from increased investor risk appetite.
June was a broadly positive month for financial markets, as easing trade tensions, central bank support, and stronger investor sentiment boosted risk assets. Developed market equities posted solid gains. US equities led the way, supported by renewed optimism in trade negotiations. Japanese equities also advanced, while UK and European markets lagged.
April was volatile for markets, as equity and bond markets reacted to uncertainty caused by the US tariffs announced by President Trump on ‘Liberation Day.
March was a negative month for markets, with both equities and bonds falling. Markets were driven by continued volatility, due to the uncertainty around US tariffs, growth and inflationary concerns as well as shifting fiscal policy in Europe.
In a mixed month for investors, European and Emerging Market equities continued to outperform the US. The S&P 500 saw a decline, driven by weaker than expected revenue for Nvidia, leading to a particularly difficult month for the Magnificent 7. US equities were not alone, with Japanese equities also performing notably badly.
January saw a change to 2024’s status quo with European markets outperforming the US, albeit most equity markets broadly produced positive returns. This was despite the supportive ‘America First’ policy agenda of the Trump administration, as US equities were impacted by the emergence of the Chinese Artificial Intelligence (AI) company, DeepSeek.