Markets remained constructive throughout May as investors increasingly priced in geopolitical de-escalation and a potential agreement between the US and Iran. While uncertainties remain, the prospect of a reopening of the Strait of Hormuz and declining energy prices have improved the outlook for both equity and bond markets.

April was marked by continued geopolitical uncertainty and volatility in energy markets, while investor sentiment remained supported by resilient equity markets and renewed momentum in AI-related sectors.

Markets were volatile at the start of the year, driven by macroeconomic uncertainty, trade tensions, weaker sentiment around large tech earnings, and escalating conflict in the Middle East impacting energy supply, which affected both equity and bond markets.

Markets navigated a volatile macro environment in February, with geopolitical tensions and policy uncertainty creating short-term market swings. At the same time, economic indicators point to a gradual broadening of global growth and easing inflation pressures, supporting overall investor sentiment.

The start of the year was marked by heightened geopolitical uncertainty and market volatility, yet investor sentiment improved as economic data proved more resilient than expected. In this edition, we briefly reflect on the macroeconomic environment in January and the key trends shaping financial markets and deal activity.

After a strong run for most of the year, financial markets took a breather in recent weeks, with a notable rotation away from growth and technology towards more defensive sectors.

October saw broad market gains as easing US-China tensions and moderating inflation boosted confidence in equities and bonds. Yet with US markets nearing record highs, much of the optimism now appears priced in, leaving limited room for error.

The third quarter of 2025 delivered strong returns across most asset classes, driven by easing trade tensions, AI optimism, and expectations of Fed rate cuts. Emerging markets outperformed, while Europe lagged, with German equities under pressure and French markets proving more resilient despite political uncertainty.

During the summer, global growth remained resilient, supported by strong services activity, though trade frictions, shifting policies, and persistent inflation kept investors wary. Meanwhile, the Federal Reserve signaled a change in risks, leaving the door open to possible rate cuts.