Key Highlights for July 2025
- Global equities advanced as lingering uncertainty over US trade policy eased. Indeed, tariff updates were a key driver of performance as the United States announced deals with several major partners. Countries that secured agreements ahead of the end-of-month reciprocal tariff deadline tended to see a boost to equity performance—albeit often temporary—while others generally lagged.
- Technology stocks outperformed as strong earnings results catalyzed renewed enthusiasm over the prospects for artificial intelligence. Gains were highly concentrated in the United States and emerging markets Asia regions, contributing to their outperformance over broader global equities.
- A lifting of some trade uncertainty supported the global economic outlook, putting upward pressure on bond yields and weighing on fixed income returns. Corporate high-yield bonds outperformed amid the risk-on environment.
- The US dollar appreciated for the first time this year, boosted by US trade deals that generally secured import tariffs lower than initially proposed by the Trump administration.