Q2 in review

Global equities overcame tariff turbulence and hostilities between Iran and Israel to end the second quarter of 2025 in positive territory. The MSCI ACWI Index gained 11.5% over the three months, ending the period with a 4.5% rise in June. With the global equity benchmark comprising over 60% US stocks, the performance largely reflected a robust showing by the US market (see below), which was helped by some encouraging economic data releases and the resurgence of some of the ‘Big Tech’ equities. By the end of the three months, the narrative that a major rotation out of US equities was under way was being challenged in some quarters.

Nevertheless, European and UK shares still delivered positive returns in Q2 overall, recovering in May and June from April’s tariff-induced wobble, while emerging markets equities were particularly strong (see below). By sector, information technology was the standout performer in Q2 – the tech-focused Nasdaq index was up about 18% over the period – with telecoms and industrials equities also faring well. Energy was among the weakest equity sectors, despite the threat to a crucial oil-supply route in the Middle East after conflict broke out between two of the region’s dominant protagonists. The price of a barrel of Brent crude declined almost 10% over Q2, reflecting sluggish demand growth and the likelihood that oil-producing nations will increase supply.

Source: Bloomberg as at 30 June 2025.