Fintuity – Market Review – July 2025
July 2025 saw an improvement in investor sentiment, driven by a calming in global political discourse and more clarity on international trade and fiscal strategies. Global financial markets responded positively, with equity indices setting new highs, supported by robust earnings and a stabilising macroeconomic backdrop.
If you’re looking to understand how these trends might affect your investments, book a meeting with an adviser today.
Equities Rally on Earnings and Trade Developments
During the month, developed market equities climbed by 1.3%, reaching all-time highs. Smaller companies initially led the charge, buoyed by the passage of expansionary fiscal measures in the US. Later in the month, larger companies took the lead following strong earnings announcements and a steady interest rate outlook from the Federal Reserve.
Growth-oriented sectors outperformed value sectors, with technology continuing to shine. Growth stocks rose 2.1%, while value lagged at 0.5%. Investors seeking the top financial adviser to help interpret these movements within their portfolios may benefit from speaking to an independent adviser for strategic insights and tailored guidance.
Emerging market equities gained 2.0%, led by positive developments in Greater China and Korea. Stronger economic indicators in China, paired with ongoing interest in artificial intelligence investments, provided significant support. Meanwhile, gains in industrial commodities like iron ore and steel further lifted sentiment across emerging regions.
Commodities overall were mixed (-0.5%), with gold prices stalling and copper experiencing volatility due to fluctuating tariff policies. Despite this, selective areas of commodity-linked markets remain attractive and can form a valuable part of a diversified pension strategy.
Bond Markets React to Fiscal Expansion
Global bond markets faced headwinds in July, with the global aggregate bond index declining by 1.5%. The rising yield environment, driven by optimistic growth projections and a strengthening US dollar, weighed on bond performance.
In the UK, Gilt yields increased following an unexpected uptick in June’s Consumer Price Index (CPI), which rose to 3.6% year-on-year. The surge was driven by increased costs in transportation, clothing, and recreation. Core inflation also saw an upward revision, putting pressure on expectations for future interest rate decisions.
Across Europe, government bond yields edged higher as economic activity improved, with the services and manufacturing sectors both contributing to growth. However, uncertainty regarding large-scale trade investments remains a watchpoint for future performance.
As an investor, understanding how to balance equity exposure with fixed income instruments is key. A certified financial adviser can provide personalised analysis, helping you structure a resilient investment portfolio with appropriate protection in volatile markets. Book a meeting with an adviser to review your current allocations.
Sector Strength and Corporate Earnings
Corporate earnings surprised to the upside. Nearly 80% of large-cap US companies beat expectations on both earnings and revenues. Technology firms led the way, benefiting from continued productivity growth and AI adoption.
The UK equity market performed well, buoyed by revisions to earnings forecasts in the energy and materials sectors. This was further helped by a rise in global commodity prices and positive GDP data from key Asian economies.
In Asia, stock markets benefited from better-than-expected economic data. China reported GDP growth of 5.3% in the first half of the year, exceeding its 5% target. Indicators such as industrial production and manufacturing activity also showed encouraging trends, boosting regional sentiment.
Investors looking to navigate the global investment landscape should find a financial adviser with strong service credentials and the flexibility to work across asset classes. Whether your focus is long-term pension planning, short-term market opportunities, or protection against downside risks, an independent financial advisor can help.
Conclusion: Prepare for What’s Next
While equity markets thrived in July, valuation concerns remain. The global price-to-earnings ratio sits at 20x, well above the long-term average of 16x, suggesting limited room for disappointment should economic conditions falter.
Investors are increasingly optimistic about a “goldilocks” scenario—moderate inflation, high productivity, and supportive fiscal policies. However, prudent portfolio construction is more important than ever. Diversification and strategic asset allocation are vital tools in managing risk and ensuring long-term financial health.
To ensure your investment strategy remains aligned with your goals, now is an excellent time to book a meeting with an adviser. Whether you’re preparing for retirement, looking to review your protection coverage, or want to work with the best financial adviser for your unique circumstances, expert help is available.
Founded in 2017, Fintuity has fast become one of the only digital Independent Financial Advisers (IFA) in the United Kingdom. Fintuity offers a wide range of financial advisory services including pensions, protection, investments and mortgage advice. The key difference is that as an exclusively digital service, we can offer significant savings and a service that is direct to you and on demand.
