July delivered a strong month for equity markets with the MSCI All Country World Index of global equities up +5.0% for the month. After policy-driven turmoil earlier in the year, the S&P 500 Index in the US has seemingly regained its mojo, rising +5.9% in July and moving it back into positive territory for the year. Large technology stocks which make up a significant part of the US index enjoyed a particularly strong month; generally reporting results that surpassed analyst expectations. Nvidia, the maker of AI chips, became the first company to hit a US$4 trillion market capitalisation (meaning the total value of all its outstanding shares). To put this in perspective, this means Nvidia on its own is currently valued approximately 25% greater than the combined value of all 548 companies within the UK’s FTSE All Share Index.
That said, the FTSE All Share Index in the UK enjoyed another solid month, gaining +4.0%. This takes the index to +13.4% for 2025 so far. The lower valuations on offer in the UK continue to gather some attention for those seeking some diversification away from the US and the combination of a 3.5% dividend yield, ongoing share buybacks, solid profit growth and takeover activity are helping push the index higher.
European Equity markets, as measured by the MSCI Europe ex-UK Index, were relatively weaker over the month, rising just +1.0%. Although, it was announced that the US and the EU had reached an agreement on tariffs, effectively averting a transatlantic trade dispute, a 15% tariff will still be maintained on most EU exports to the US, higher than the 10% tariff agreed upon in the separate deal with the UK. Many commentators felt that the EU’s weak bargaining position led them to give in on most US demands. The deal also included commitments by the EU to increase investment in the US and scale up the purchase of energy products and military equipment, although it remains to be seen how given that the EU Commission does not have the legal power to enforce this.
Bond markets were generally mixed over the month with the Bloomberg Global Aggregate Index down -0.1% in GBP hedged terms. Longer dated bonds were down more as markets worried about the impact of President Trump’s proposed tax cuts and increased spending commitments on US national debt. However, corporate and high yield bonds performed better, supported by continued strength in the US economy.
All performance figures are stated in Sterling terms, unless otherwise specified.
Any opinions stated are honestly held but are not guaranteed and should not be relied upon.
The information contained in this material is for information only and is not to be regarded as an offer to buy or sell, or the solicitation of any offer to buy or sell, any investments or products.
All the data contained in the communication is believed to be reliable but may be inaccurate or incomplete.
Home / News / Market commentary / YOU AM market commentary – July 2025
YOU AM market commentary – July 2025
July delivered a strong month for equity markets with the MSCI All Country World Index of global equities up +5.0% for the month. After policy-driven turmoil earlier in the year, the S&P 500 Index in the US has seemingly regained its mojo, rising +5.9% in July and moving it back into positive territory for the year. Large technology stocks which make up a significant part of the US index enjoyed a particularly strong month; generally reporting results that surpassed analyst expectations. Nvidia, the maker of AI chips, became the first company to hit a US$4 trillion market capitalisation (meaning the total value of all its outstanding shares). To put this in perspective, this means Nvidia on its own is currently valued approximately 25% greater than the combined value of all 548 companies within the UK’s FTSE All Share Index.
That said, the FTSE All Share Index in the UK enjoyed another solid month, gaining +4.0%. This takes the index to +13.4% for 2025 so far. The lower valuations on offer in the UK continue to gather some attention for those seeking some diversification away from the US and the combination of a 3.5% dividend yield, ongoing share buybacks, solid profit growth and takeover activity are helping push the index higher.
European Equity markets, as measured by the MSCI Europe ex-UK Index, were relatively weaker over the month, rising just +1.0%. Although, it was announced that the US and the EU had reached an agreement on tariffs, effectively averting a transatlantic trade dispute, a 15% tariff will still be maintained on most EU exports to the US, higher than the 10% tariff agreed upon in the separate deal with the UK. Many commentators felt that the EU’s weak bargaining position led them to give in on most US demands. The deal also included commitments by the EU to increase investment in the US and scale up the purchase of energy products and military equipment, although it remains to be seen how given that the EU Commission does not have the legal power to enforce this.
Bond markets were generally mixed over the month with the Bloomberg Global Aggregate Index down -0.1% in GBP hedged terms. Longer dated bonds were down more as markets worried about the impact of President Trump’s proposed tax cuts and increased spending commitments on US national debt. However, corporate and high yield bonds performed better, supported by continued strength in the US economy.
All performance figures are stated in Sterling terms, unless otherwise specified.
Any opinions stated are honestly held but are not guaranteed and should not be relied upon.
The information contained in this material is for information only and is not to be regarded as an offer to buy or sell, or the solicitation of any offer to buy or sell, any investments or products.
All the data contained in the communication is believed to be reliable but may be inaccurate or incomplete.