MarketWatch for June 2025
Global markets gained in June, with US tech and corporate bonds leading the way. Europe saw mixed results amid rate cuts, while Asia benefited from strong emerging market performance. Energy prices rose on geopolitical tensions, offsetting weaker agricultural commodities.
Global markets delivered a positive performance in June, with equities and corporate bonds both showing resilience despite ongoing geopolitical tensions. Investors largely looked past the conflict between Israel and Iran, focusing instead on economic fundamentals and central bank signals.
United States: Tech leads the way
US markets enjoyed a strong month, with broad-based gains across most sectors. Technology and communication services were standout performers, reflecting continued investor confidence in innovation and digital infrastructure. However, consumer staples lagged, suggesting some caution around defensive sectors.
Europe: Mixed fortunes amid policy shifts
European shares saw modest declines overall, with consumer-focused sectors under pressure. In contrast, energy stocks benefited from higher commodity prices. The European Central Bank reduced interest rates by 0.25%, signalling that the current easing cycle may be nearing its end. This move was well-received by markets, which are increasingly optimistic about the region’s economic outlook.
UK Market: Modest gains with sector rotation
UK equities edged higher in June, supported by strength in industrials, telecommunications, and energy. However, healthcare stocks came under pressure, particularly within the pharmaceutical space.
Asia: Strong momentum in key markets
Japanese shares advanced, buoyed by the central bank’s decision to maintain interest rates while outlining a slower pace for reducing bond purchases in the future. Elsewhere in Asia, emerging markets outperformed their developed counterparts, helped by a softer US dollar and renewed optimism around US-China trade discussions. Korea, Taiwan, and Turkey were among the top performers, while Southeast Asian markets were more subdued.
Bonds: Government debt diverges, credit holds firm
Government bond markets delivered mixed results. US and UK bonds rallied, with yields falling across the curve, while German bonds saw yields rise amid expectations of increased defence spending. Corporate bonds remained resilient, with investment-grade credit outperforming government debt in many regions. High yield bonds also performed well, particularly in the US and Europe, as investors embraced risk in a stable economic environment.
Commodities: Energy strength offsets agricultural weakness
Commodity markets gained ground in June, led by the energy sector. Rising geopolitical tensions supported oil prices, although concerns about oversupply kept gains in check. Agricultural commodities were weaker, reflecting improved supply conditions and easing weather-related concerns.
Important information
Fees and charges apply.
The value of investments and the income from them can fall as well as rise and are not guaranteed. The investor might not get back their initial investment.
In preparing this article we have used third party sources which we believe to be true and accurate as at the date of writing but can give no assurances or warranty regarding the accuracy, currency or applicability of any of the contents in relation to specific situations and particular circumstances.
Any views expressed are our in-house views as at the time of publishing. This content may not be used, copied, quoted, circulated or otherwise disclosed (in whole or in part) without prior written content.
