Market review – June 2025

Please see our glossary for terms used throughout the article.

June was a positive month for many stockmarkets around the world as they continued to rebound from the post-tariff announcement lows in April.

Company share prices (equities) in the US, Japan and emerging markets were particularly buoyant. However, European equities lagged the broad global market, weighed down by a stronger euro.

In the US, the S&P 500 Index ended the month at a record high, as did the technology-dominant Nasdaq 100 Index, which was buoyed by strong first-quarter company earnings and continued investor enthusiasm for Artificial Intelligence-related stocks, such as Nvidia.

Fixed income (bonds) markets posted solid returns in June, with broad-based gains across sovereign and corporate bond markets. US and UK government bonds (Treasuries and Gilts) rallied, rebounding from their losses in May.

Corporate bonds, particularly in the US, also performed well. Emerging market bonds attracted capital inflows as well, supported by robust local financial and economic conditions and a weaker US dollar, which is perceived to be favourable for emerging market economies.

While the European Central Bank cut its deposit rate by a quarter of a percentage point to 2%, the Bank of England and US Federal Reserve held interest rates steady, citing uncertainty around trade and inflation.

Currency markets saw notable moves in June, with the US dollar weakening significantly against major currencies, particularly the euro, but also the UK pound. The dollar also weakened against many emerging market currencies.

In commodities, oil prices initially surged following Israeli and US strikes on Iranian nuclear facilities, but later retreated sharply after a US-brokered ceasefire eased fears of a broader Middle East conflict. The copper price rose, supported by optimism over US-China trade negotiations and improving industrial demand.

The value of investments will fluctuate, which will cause prices to fall as well as rise and you may not get back the original amount you invested. We are unable to give financial advice. If you are unsure about the suitability of your investment, speak to your financial adviser. The views expressed in this article should not be taken as a recommendation, advice or forecast. Past performance is not a guide to future performance.