Despite uncertainty around US President Trump’s policies, geopolitics and interest rates, 2025 saw strong investment returns on the back of falling interest rates, solid economic and profit growth globally and expectations for stronger profit growth in Australia. AI enthusiasm boosted US shares although they were relative underperformers globally.

Global shares mostly rose over the last week but had a messy ride. While US shares initially rose strongly on the back of the end of the Government shutdown the gain for the week was erased to just 0.1% as hawkish commentary by some Fed officials saw market expectations for the probability of a December rate cut fall back to around 45% and as valuation concerns weighed on tech/AI related stocks.

US and European share markets fell sharply on Friday in response to the latest threatened re-escalation in the trade ware between the US and China