Comprehensive Global Stock Market Performance 2025

As we move into 2025, the global stock markets continue to show resilience and optimism, setting a positive tone for the year ahead. In Australia, the ASX has shown a mixed performance, influenced by both global economic trends and domestic factors.

Overall, the main world indices, including the S&P 500 and Dow Jones Industrial Average, continue to show strength, driven by strong economic data and corporate earnings. The technology and AI sectors remain significant drivers of market gains globally, contributing to the positive market sentiment as we move further into 2025.

Markets closed the week with mixed signals as investors digested earnings reports, central bank decisions, and trade developments. While tech and industrials showed strength, inflation and tariff concerns continue to weigh on sentiment.

• United States:

• Dow Jones Industrial Average: Closed 2.92% lower at 43,588.58

• S&P 500: Fell 1.30% to 6,305.60

• Nasdaq Composite: Dropped 2.17% to 20,650.13

• Canada (TSX Index): Closed at 27,020.40, down 0.88% on the day but up 5.8% for July

U.S. markets declined sharply, weighed down by weaker-than-expected jobs data and renewed trade tensions, particularly with Canada and South Korea. The pullback followed a strong July rally, with investors locking in profits despite earlier optimism around tech earnings and trade deals.

Canada continues to benefit from post-election optimism and strong energy sector performance, though recent declines in mining, healthcare, and tech stocks weighed on the TSX. The new 35% U.S. tariff on Canadian goods added pressure to sentiment.

• Australia (ASX 200): Closed 0.93% lower at 8,662.00

• China (Shanghai Composite): Declined 0.37% to 3,559.95

• Japan (Nikkei 225): Dropped 0.66% to 40,799.60

• India (NIFTY 50): Fell 0.82% to 24,565.35

• South Korea (Kospi): Slid 3.88% to 3,119.41

Asia-Pacific markets ended the week mixed, with sharp declines in South Korea and Australia driven by tariff uncertainty and weak manufacturing data. Japan’s Nikkei retreated despite earlier strength, while China’s Shanghai Composite snapped a five-week winning streak amid disappointing factory activity. India’s NIFTY 50 was weighed down by foreign fund outflows and muted earnings, ahead of the RBI’s policy meeting.

• Germany (DAX): Fell 2.7% to 24,651.00

• France (CAC 40): Dropped 2.9% to 7,546.16

• Italy (FTSE MIB): Declined 1.56% to 40,987.69

• Spain (IBEX 35): Slipped 0.91% to 14,266.40

• Netherlands (AEX): Fell 2.1% to 866.10

• United Kingdom (FTSE 100): Closed 0.7% lower at 9,068.58

European equities pulled back sharply after a strong July, driven by:

• Renewed tariff tensions with the U.S.

• Weak U.S. jobs data triggering global risk-off sentiment

• Defensive sectors like banking and pharma showing resilience, while tech and industrials saw heavier selling

UK markets remain cautious amid a strong pound and mixed earnings, with the FTSE 100 breaking below the 9,100 mark for the first time in two weeks.

• Brazil (Bovespa): Closed at 122,805, down 4.1% for August so far

• Mexico (IPC Index): Closed 0.62% lower at 57,043.20

• Argentina (Merval Index): Rose 4.10% to 2,304,342.50

• Chile (IPSA Index): Dropped 0.30% to 8,161.33

• Peru (Lima General Index): Fell 0.74% to 33,192.68

Latin American markets showed mixed performance:

• Argentina’s Merval surged on speculative buying despite political uncertainty.

• Brazil’s Bovespa came under pressure from new U.S. tariffs and weak industrial output.

• Mexico’s IPC slipped slightly as trade negotiations with the U.S. and Canada remain unresolved.

• Chile’s IPSA was weighed down by falling copper prices despite strong export volumes.

• Peru’s Lima General Index declined amid profit-taking in mining stocks, despite solid fundamentals.

Latin American markets remain resilient despite tariff headwinds and political shifts. Mexico held steady as trade negotiations extended into October, while Peru saw a pullback despite strong mining sector performance.

📡 Technology

• Performance: Strong

Led by AI, cloud, and semiconductor gains. Meta and Microsoft beat earnings expectations. Generative AI adoption continues to drive productivity and innovation across software and hardware segments.

🏗️ Industrials

• Performance: Mixed

Aerospace and defense stocks surged globally, especially in Europe and the U.S. Australian industrials showed signs of recovery, though cost pressures and weak demand remain a concern.

💰 Financials

• Performance: Cautiously Positive

Italian and Indian banks posted strong results. Australian financials rose 14.9% over the past year but dipped 3.8% this week due to Commonwealth Bank’s pullback. U.S. banks remain cautious amid regulatory uncertainty and soft consumer lending.

⚡ Energy

• Performance: Weak

Brent crude hovered around $71.70/barrel. Tariff threats and geopolitical tensions weighed on oil and gas stocks. Renewables gained ground, especially in Australia, where battery storage and solar displaced coal and gas generation.

🏥 Healthcare

• Performance: Recovering

Healthcare stocks lagged in early 2024 but are rebounding in 2025. Innovation in obesity drugs, oncology, and surgical robotics is driving renewed investor interest. U.S. healthcare earnings are projected to grow at the fastest rate in 18 years.

🛍️ Consumer Goods

• Performance: Moderate

Australia: Health-focused FMCG brands remain resilient amid cautious spending.

United States: Consumer staples outperform; discretionary spending remains subdued.

United Kingdom: Retail and defense-linked discretionary stocks gain traction.

Globally: CPG companies are shifting toward AI-led innovation and portfolio reshaping to regain relevance. Price-driven growth is fading, and volume-led strategies are back in focus.

📈 Inflation

• Global inflation is easing, with headline rates falling across major economies.

• United States: CPI at 2.7% as of June 2025.

• Australia: Headline inflation dropped to 2.1%, the lowest since early 2021.

• Eurozone: Inflation stabilized at 2.0%.

• Canada: CPI at 1.9%.

• China: Inflation remains subdued at 0.1%.

💸 Interest Rates

• United States: The Federal Reserve held rates at 4.25–4.50%; next review on September 17.

• Australia: RBA held rates at 3.85% in July; a cut to 3.60% is expected at the August 12 meeting.

• Canada: Bank of Canada maintains its benchmark rate at 2.75%, resilience in the face of tariffs

• United Kingdom: BoE expected to cut rates to 4.0% on August 7, with further easing likely.

• Eurozone: ECB continues its easing cycle; rates now at 2.15%, no change is expected.

Tech & Industrials

• Meta: Revenue of $47.5B, up 22% YoY; EPS of $7.14, beating expectations

• Microsoft: Surged 8% post-earnings; strong growth in cloud and AI-driven revenue

• Apple: Revenue of $94B, up 10% YoY; EPS of $1.57, driven by iPhone sales

• Amazon: Revenue of $167.7B, up 13% YoY; EPS of $1.68, but stock fell ~7% due to cautious guidance

• Reddit: Revenue of $500M, up 78% YoY; EPS of $0.45, stock surged 15–20% on surprise profitability

ASX Reporting Season

• Over 200 companies are releasing results throughout August 2025

• Key themes include:

• Margin pressures from tariffs and inflation

• AI integration across sectors

• Consumer demand shifts, especially in retail and travel

• Notable ASX healthcare firms reporting include Cochlear (COH) and HealthCo (HCW) on August 15

Healthcare Sector

U.S. healthcare firms are projecting the fastest earnings growth in nearly two decades, rebounding from post-pandemic lows

• Drivers include:

• AI-powered diagnostics and robotics

• Obesity treatments (GLP-1 drugs) and oncology innovations

• Improved margins and volume recovery in hospitals

The global market outlook for the remainder of 2025 remains cautiously optimistic, though risks are rising. Inflation is easing in most regions, and central banks are expected to resume rate cuts in the fourth quarter. However, new U.S. tariffs, softening consumer demand, and early signs of labour market weakness are creating uncertainty.

Europe is showing resilience, supported by stable domestic demand and falling inflation, while Asia is mixed, with Japan rebounding and China facing manufacturing headwinds. Latin America is expected to grow faster than in 2024, led by Argentina’s recovery.

Australia enters the second half of 2025 with cautious optimism. Inflation has eased to 2.1%, prompting the Reserve Bank to begin rate cuts, though interest rates remain moderately restrictive. Consumer spending is still subdued despite stronger household incomes, and the housing sector is showing signs of recovery. The care economy continues to drive employment growth, while risks from global trade tensions and stretched equity valuations remain. Investors are advised to watch for volatility and focus on sectors tied to green energy, infrastructure, and domestic services.

Peru’s economy is stabilizing after a turbulent 2023, with projected GDP growth of 2.5% in 2025. Mining exports remain strong, and private consumption is recovering thanks to lower interest rates. However, political uncertainty ahead of the 2026 elections and structural challenges, such as labour informality and weak productivity, continue to weigh on investor confidence. The country’s deepening trade ties with China, including the new Chancay port, offer long-term upside. Sectors like infrastructure, logistics, and critical minerals are expected to lead investment opportunities.

Investors are advised to stay flexible and focused on sectors benefiting from digital transformation, green energy, and supply chain diversification. Volatility may increase in the short term, but long-term fundamentals remain supportive for global equities.

Here’s a brief summary of the stock market performance in 2025 so far:

The global stock markets have experienced a mix of highs and lows. The S&P 500 and Nasdaq Composite in the US have seen significant gains, driven by strong corporate earnings and the ongoing artificial intelligence boom. However, there are concerns about potential market corrections due to high valuations.

The Australian stock market, represented by the ASX 200, has lagged behind its international peers. While banks and financials have performed well, mining and energy stocks have struggled.

The US stock market has been performing well, with the S&P 500 and Nasdaq reaching multiple record highs. The Dow Jones Industrial Average has also seen gains, but there are predictions of a potential 20% decline due to the market’s high valuation.

The UK stock market has shown solid performance, with the FTSE 100 experiencing steady gains. Strong corporate earnings and a stabilized post-Brexit economy have contributed to investor confidence, although there are concerns about potential impacts from global economic uncertainties.

The Canadian stock market, represented by the TSX, has seen a positive start to the year. Energy and technology sectors have been the main drivers of growth, benefiting from rising commodity prices and advancements in tech innovation.

China’s stock market has seen moderate growth, driven by the ongoing recovery from previous economic slowdowns. The Shanghai Composite Index has been buoyed by government stimulus measures and increased consumer spending, although concerns about regulatory crackdowns in certain sectors remain.

The Japanese stock market has experienced modest gains, with the Nikkei 225 showing steady performance. Strong export growth and corporate restructuring efforts have contributed to the market’s resilience, despite global economic challenges.

The German stock market, represented by the DAX, has shown stable growth. Manufacturing and automotive sectors have been the key contributors, supported by robust export demand.

The French stock market, represented by the CAC 40, has seen gradual gains. Luxury goods and technology sectors have performed well, driven by strong consumer demand.

The Italian stock market, represented by the FTSE MIB, has experienced moderate growth. Financial and industrial sectors have been the main drivers, despite ongoing political uncertainties.

The Spanish stock market, represented by the IBEX 35, has shown positive performance. Tourism and banking sectors have been the key contributors, benefiting from a rebound in travel and financial stability.

The Dutch stock market, represented by the AEX, has seen steady gains. Technology and consumer goods sectors have performed well, driven by innovation and strong domestic demand.

Brazil’s market has experienced significant volatility, with fluctuations driven by political instability and economic reforms. The Bovespa index has seen gains in the energy and agricultural sectors.

The Peruvian market, represented by the S&P/BVL Peru General Index, has faced challenges due to economic factors but shows signs of improvement in sectors like real estate.

Mexico’s stock market has shown steady growth, supported by favorable trade policies and strong consumer spending. The IPC index is performing well.

Chile’s market has been stable, with strong performances in the mining and utility sectors. The IPSA index is performing well.

Argentina’s market is recovering from economic crises, with positive performances in the financial and manufacturing sectors. The Merval index is showing signs of improvement.

Communication services and technology stocks have been the top performers, thanks to the AI boom. On the other hand, basic materials have underperformed, but there are opportunities for growth in 2025.

Falling inflation and interest rate cuts by the Federal Reserve have contributed to the bull market. However, there are risks associated with evolving trade and immigration policies, which could impact growth.

Disclosure: The information provided in this newsletter about stock markets, investments, and financial matters is for general informational purposes only and should not be considered as financial advice. Every individual’s situation is unique, and I strongly recommend seeking independent financial advice from qualified professionals before making any investment or financial decisions. Past performance is not indicative of future results. The views and strategies described may not be suitable for all investors.

I’m NOEMI, the Founder of Online Harbour, NOEMI, and CG Strategies. I’m passionate about sharing knowledge that enriches both professional and personal lives.