Key Highlights for Second Quarter 2025
- Global equities surged, closing the quarter at all-time highs. Stock markets overcame the initial shock of US President Donald Trump’s tariff policy announcements in early April, rallying more than 20% from their quarterly lows. Apparent progress toward trade deals with major partners—particularly China—was the key driver of the new bull market
- Trade policy disruption and its potential adverse impacts to economic growth were reflected in currency markets, where the value of the US dollar plunged. This allowed non-US equities to outperform in USD terms, but US stocks still outperformed global peers in local currency terms.
- Global bond yields generally declined. US Treasury securities were a key exception, where longer-dated yields rose due to potential inflationary impacts of tariffs and mounting US fiscal risks.
- Geopolitical tensions in the Middle East contributed to the volatile environment, particularly within commodity prices, while other asset markets were relatively insulated.