Investment update - June 2025
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Published on 4 Aug 2025Global equity markets extended gains in June, supported by easing inflation, hopes of rate cuts, and resilient economic data. Despite the brief ‘12-Day War’ between Iran and Israel, investor sentiment improved thanks to falling oil prices and stabilising global trade dynamics. The US led the rally, with the S&P 500 up 5.0% and the Nasdaq 6.6%, driven by strong tech performance. Emerging markets posted solid gains, and global fixed income also rebounded, aided by softer inflation data and a reversal in US Treasury sell-offs.
In Australia, the S&P/ASX 300 rose 1.4% and the labour market remained steady, though the economy shed 2,500 jobs. Consumer sentiment improved slightly, but concerns linger. A narrowing trade surplus, partly due to reduced US shipments from tariffs, highlighted ongoing external pressures. Inflation eased to 2.1% from 2.4% in previous months; RBA held rates at 3.85% amid global uncertainty.
In Europe, the European Central Bank cut rates to 2.0% following steady core inflation. Business confidence softened while manufacturing continued contracting. The UK, Japan and China all faced mixed signals and weak trade data.