MarketWatch for September 2025
Global markets rose in September, supported by falling interest rates and strong performance in emerging markets. US and European equities gained, with technology and industrials leading. UK and Japanese markets also advanced, while political developments in France added uncertainty. Bond markets benefited from lower yields, and commodities saw mixed results, with gold rallying and oil output increasing.
September was a broadly positive month for global markets. Equities gained across most regions, with emerging markets leading the way. Bond markets also performed well, supported by falling yields and a more accommodative stance from central banks. Commodities saw mixed results, with gold rallying and energy prices easing.
United States: Tech leads gains as Fed cuts rates
US equities advanced in September, with information technology and communication services among the top-performing sectors. Materials and consumer staples lagged. The Federal Reserve delivered a widely anticipated 25 basis point interest rate cut, responding to weaker jobs data and signs of slowing growth. The move supported investor sentiment and helped lift markets.
Europe: Political shifts and sector divergence
Eurozone shares posted gains, led by strong performance in the information technology and industrials sectors. Consumer staples, materials and telecoms underperformed. Political developments in France added uncertainty, as Prime Minister Bayrou lost a confidence vote and was replaced by Sebastien Lecornu. Fitch downgraded France’s sovereign rating from AA- to A+.
United Kingdom: Mining and banks drive returns
UK equities rose, with mining stocks benefiting from merger and acquisition activity and higher gold prices. Banks and aerospace & defence also performed well. The broader economic outlook remained stable, with investors watching central bank policy closely.
Japan: and emerging markets shine
Japanese equities delivered positive returns. Shares advanced ahead of the October leadership election for the ruling Liberal Democratic Party, following Prime Minister Ishiba’s resignation on 7 September. Investor confidence remained strong, supported by political clarity and corporate earnings.
Bonds: Yields fall, corporate bonds outperform
Bond markets had a positive month overall. Yields across developed government bond markets fell, particularly for longer-dated bonds. Corporate bonds outperformed, as investors responded to a broadly positive economic outlook and lower interest rates. The Fed’s rate cut supported shorter-dated US Treasuries, while European and UK yields rose slightly amid mixed inflation data and cautious central bank messaging.
Commodities: Gold rallies, oil output rises
Gold prices rallied, driven by expectations of lower US interest rates and central bank pressure. The Opec+ oil cartel agreed to increase output, while energy prices fell slightly. Agricultural commodities saw mixed performance, with coffee prices rising due to poor weather in Brazil.
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