June 2025 Quarterly Market Update
Read our latest market and economic update for the second quarter of 2025.
Key points:
Equity Markets Saw Considerable Gains: Equity markets were highly volatile, with sharp declines following aggressive US tariff announcements, but later rebounding strongly. Global equity markets recorded significant gains led by the US, and the Australian market also climbed an impressive 9.5%.
Trump 2.0 Effect: Trump once again moved markets with his tariff-policy announcements. A sharp sell-off in markets followed before he announced a 90-day pause, which eased investors’ nerves. His involvement in the Israel–Iran conflict also generated concern as it heightened the risk of global escalation. Lastly, the latest bill to be approved will add a tremendous amount of debt to the US, which caused volatility in the bond market.
Bond Prices Were Volatile: Bonds ended the quarter up, although yields were bashed around by announcements from the White House. Shorter-duration bonds are focusing on central-bank rate cuts, whilst longer-duration bonds are concerned with aggressive fiscal policy.
US Dollar Weakness: The US dollar continued to weaken in Q2 2025 due to concerns about the US economy. Reduced economic prospects made the US less attractive compared with economies with higher growth potential. The risk of higher US debt provided further downward pressure on the dollar.