July 2025

• Global markets delivered mixed performance in July as strong technology sector momentum offset increasing concerns regarding stretched valuations and slowing global manufacturing activity.
• Artificial intelligence-related companies continued leading equity market gains, particularly within semiconductor and cloud infrastructure sectors.
• Central banks in several developed economies began gradually easing monetary policy as inflation continued moderating.
• Bond yields declined modestly following the first wave of interest rate cuts.
• Chinese economic growth remained subdued despite ongoing government support measures.
• Commodity prices weakened slightly amid softer industrial demand expectations.

Asia (ex. Japan)

Asian markets outside Japan delivered mixed results during July as strong semiconductor demand continued supporting Taiwan and South Korea, while broader regional sentiment remained constrained by weak Chinese domestic demand.

Chinese authorities maintained supportive policy measures aimed at stabilising growth and financial markets, though investor confidence remained cautious regarding long-term property sector conditions.

Europe

European equities advanced modestly during July as easing monetary policy and moderating inflation improved financial conditions across the region.

However, industrial activity remained relatively weak, particularly within export-oriented sectors affected by slower global manufacturing demand.

United States

U.S. equities experienced increased volatility during July as investors balanced strong technology earnings against concerns regarding elevated market concentration and valuations.

Artificial intelligence-related sectors remained dominant market leaders, while the Federal Reserve began cautiously easing monetary policy following sustained improvements in inflation trends.

United Kingdom

UK equities delivered relatively stable performance during July as easing inflation and lower borrowing cost expectations supported investor confidence.

Consumer activity improved modestly, though overall economic growth remained relatively subdued compared with historical averages.

Japan

Japanese equities remained resilient during July as technology demand, exporter strength and continued foreign investor inflows supported the market.

However, speculation regarding future Bank of Japan policy normalisation and currency movements contributed to increased market volatility.

Emerging Markets

Emerging markets delivered mixed performance during July as easing global financial conditions supported capital flows while weaker Chinese growth continued limiting broader optimism.

Technology-oriented Asian economies remained among the strongest-performing emerging markets due to sustained semiconductor investment demand.

Commodities

Commodity prices weakened modestly during July as slowing global manufacturing activity and softer Chinese demand weighed on industrial raw materials markets.

Oil prices remained relatively stable despite geopolitical tensions, while industrial metals softened due to weaker construction and manufacturing activity. Gold prices remained elevated amid ongoing central bank purchases and lower interest rate expectations.