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August 2025
Monthly Market Update
Overview
Global markets displayed a mix of cautious optimism and sector-specific volatility, during the last week. In North America, U.S. equities were choppy midweek but surged after Fed Chair Powell’s Jackson Hole speech, with the S&P 500, Nasdaq, and Russell 2000 posting notable gains and the Dow reaching a record high. European markets ended modestly higher, driven by automotive and chemical sectors, while tech and defence lagged; the UK’s FTSE 100 hit record levels despite elevated inflation. Japanese equities pulled back amid tech-sector weakness and rising long-dated JGB yields. In China, the CSI 300 rose modestly, supported by PBOC monetary easing, though structural concerns persisted. India saw a fourth consecutive weekly drop in the Nifty 50 and Sensex due to FPI outflows and global uncertainties, with the pharma sector showing resilience. MENA markets were mixed, influenced by geopolitical tensions, oil price swings, and corporate earnings. In commodities, crude oil declined after earlier spikes, while gold remained firm on safe-haven demand. Currency markets saw the U.S. dollar strengthen against the euro amid geopolitical concerns, highlighting the interplay of global economic and policy factors shaping investor sentiment.
Outlook: The tug-of-war between global economic growth and inflation appears to have reached a more feasible balancing point. Across equity markets, the narrowing of the gulf between growth and value is likely to continue as a greater number of industries start to benefit from higher earnings and improving monetary and fiscal policies. 2025 likely will not be a year of robust economic (GDP growth: U.S. growth is forecast to grow at a modest 1.5%-2.5%, with the Eurozone and Chinese growth lagging. In this environment, investors could benefit from an increased allocation towards value names whilst avoiding an overexposure to growth. Nonetheless, we continue to buy high-quality, profitable, blue-chip equities with strong balance sheets and positive free-cashflow yields. Fixed-income securities also offer attractive yields at these levels, without subjecting portfolios to much downside risk. Emerging market equities and small companies are also available at attractive valuations relative to US Blue Chips. The overall outlook for equities remains cautiously optimistic, supported by a more dovish US Federal Reserve and a resilient US economy, though global risks and sector-specific performance will be closely watched.
Developed Markets
North America
During the last week, U.S. equity markets were choppy mid-week but soared into the weekend, as investor sentiment pivoted decisively. On Monday, August 18, key indices were largely flat— the S&P 500 held steady at ~6,449, the Nasdaq inched up slightly, and the Russell 2000 gained about 0.3%. Tech stocks underperformed early in the week amid rising signs of overvaluation in AI sectors. However, with Fed Chair Powell’s Jackson Hole speech on August 22, markets roared back: the S&P 500 climbed ~1.5%, the Nasdaq rose nearly 2%, and the Russell 2000 surged almost 4%. The rally carried into Friday, capping the week with the Dow jumping about 846 points to a new record high, spurred by renewed hopes for imminent rate cuts.
Europe & UK
During the last week, European markets ended modestly higher overall, with the STOXX Europe 600 gaining around 0.2% on Friday—a third straight weekly advance—as investor sentiment improved heading into Fed Chair Powell’s Jackson Hole remarks. Automotive and chemicals sectors outperformed, benefiting from news of reduced U.S. tariffs, while tech and defence stocks underperformed, dragging on broader gains. Germany’s DAX rebounded slightly after earlier losses, supported by these pro-trade developments. In the UK, the FTSE 100 marked a strong week, closing with record highs and on track for its best week since April, buoyed by gains in banking and consumer sectors—particularly Standard Chartered, which rallied on favourable U.S. court news—despite inflation rising to 3.8%, tempering the outlook for near-term BoE rate cuts. Let me know if you’d like a breakdown by sector or country beyond this!
Japan
During the last week, Japanese equities pulled back amid global tech-sector weakness and cautious investor sentiment ahead of the Jackson Hole symposium. The Nikkei 225, which had recently hit record highs, slipped as tech-heavy segments faced headwinds—stemming from worries about U.S. government intervention in the tech industry—while broader Asian markets also paused their rally. Concurrently, rising U.S. Treasury yields and moves toward a more inflation-tolerant Fed stance exerted upward pressure on long-dated Japanese government bond yields, with the 30-year JGB hitting multi-decade highs around 3.215%, underlining market anxiety around global monetary policy shifts.
Emerging Markets
China
During the last week, Chinese equities experienced modest gains, with the CSI 300 Index rising approximately 0.8%. Investor sentiment was bolstered by continued monetary easing from the People’s Bank of China (PBOC), which maintained its Loan Prime Rates but reduced the seven-day reverse repo rate by 10 basis points and cut reserve requirement ratios—injecting approximately ÂĄ1 trillion into the banking system to support credit flows to consumers, SMEs, and exporters. Despite policy support, investor caution persisted due to structural challenges in China’s property sector, fragile consumer sentiment, and fiscal discipline concerns. Attention is now focused on upcoming PBOC guidance, broader economic stabilization efforts, and signals from the Lujiazui Forum regarding Beijing’s balancing act between growth momentum and financial stability.
India
During the last week, Indian equity markets experienced heightened volatility. The Nifty 50 index declined by 0.9%, marking its fourth consecutive weekly drop, while the BSE Sensex fell by 0.88% to close at 81,463 on July 25. This downturn was primarily driven by persistent foreign portfolio investor (FPI) selling, which amounted to approximately â‚ą31,889 crore in the first half of August, with financial and IT sectors bearing the brunt of the outflows. Global factors, including escalating U.S. tariff concerns and a weakening rupee, further dampened investor sentiment. Despite the broader market pressures, the Nifty Pharma index showed resilience, advancing by 0.54% on July 25, driven by gains in stocks like Zydus Life and Aurobindo.
MENA
During the last week, equity markets across the MENA region exhibited mixed performance amid geopolitical tensions and fluctuating oil prices. Dubai’s DFMGI declined by 0.8% on July 21, pressured by profit-taking in major financial stocks like Emirates NBD, despite a surge in Air Arabia’s shares following its approval to operate a new Saudi low-cost airline by 2030. Abu Dhabi’s index fell 0.2% on the same day, while Qatar’s QSI gained 0.7%, supported by a 1.5% rise in Qatar National Bank’s stock. Saudi Arabia’s TASI ended the week with a 0.2% increase, breaking a nine-day losing streak, bolstered by profit gains at Al Rajhi Bank and Saudi National Bank. Egypt’s EGX30 edged up 0.2% on July 21, reaching a new record high. Investor sentiment was influenced by concerns over U.S. trade policies and oil price volatility, which offset strong corporate earnings in the region.
Commodities and Forex
Commodities
During the last week, global commodity markets experienced notable fluctuations influenced by geopolitical tensions, supply-side factors, and investor sentiment. Brent crude oil prices declined from $71.92 per barrel on July 21 to $67.66 on July 25, while WTI crude oil prices decreased from $68.39 to $65.16 during the same period. These movements were influenced by a 6–7% surge in crude prices earlier in the week due to escalating geopolitical tensions and an unexpected OPEC+ output increase for August. Gold prices remained firm, hovering near $3,355 per ounce. Spot gold reached a high of approximately $3,381 midweek ahead of the Federal Reserve meeting, driven by safe-haven demand amid Middle East tensions, mixed U.S. inflation data, and a cautious Federal Reserve stance. The price ended slightly below that level, bolstered by expectations of Fed rate cuts later this year and geopolitical and trade policy uncertainty. These developments underscore the complex interplay of geopolitical events, supply-side factors, and investor sentiment in shaping commodity markets during this period.
Currencies
During the last week, currency markets experienced notable fluctuations. The U.S. Dollar Index (DXY) strengthened, rising from 97.79 on August 18 to 98.60 on August 22, reflecting renewed safe-haven demand amid escalating geopolitical tensions in the Middle East. Conversely, the euro (EUR/USD) declined from 1.1669 on August 18 to 1.1613 on August 22, influenced by a cooling euro and ongoing uncertainty over U.S. tariff policies. This divergence in currency movements highlights the complex interplay of global economic factors affecting investor sentiment and currency valuations.
Commodities
| Name | 05/09/25 | 31/08/25 | 30/06/25 | 31/12/24 |
|---|---|---|---|---|
| WTI Oil ($/barrel) | $61.87 | $64.01 | $65.11 | $71.72 |
| Brent Oil ($/barrel) | $65.50 | $68.12 | $67.61 | $74.64 |
| Gold ($/oz) | $3586.69 | $3447.95 | $3303.14 | $2624.50 |
| Natural Gas ($/mmBtu) | $3.05 | $3.00 | $3.46 | $3.63 |
Currencies
| Name | 05/09/25 | 31/08/25 | 30/06/25 | 31/12/24 |
|---|---|---|---|---|
| Euro (€/$) | 1.1717 | 1.1686 | 1.1787 | 1.0354 |
| Pound (ÂŁ/$) | 1.3509 | 1.3504 | 1.3732 | 1.2516 |
| Japanese Yen (ÂĄ/$) | 147.43 | 147.05 | 144.03 | 157.20 |
| Swiss Franc (CHF/€) | 0.9353 | 0.9355 | 0.9348 | 0.9401 |
| Chinese Yuan Renminbi (CNY/$) | 7.1328 | 7.1308 | 7.1638 | 7.2993 |
Index Valuations
Index Return
| Equities | 1 Week | MTD | QTD | YTD |
|---|---|---|---|---|
| S&P 500 | 0.36% | 0.36% | 4.70% | 11.18% |
| NASDAQ Composite | 1.16% | 1.16% | 6.67% | 12.92% |
| DJ Industrial Average | -0.26% | -0.26% | 3.33% | 8.03% |
| S&P 400 | 1.34% | 1.34% | 6.48% | 6.68% |
| Russell 2000 | 1.07% | 1.07% | 10.17% | 8.19% |
| S&P 500 Equal Weight | -0.07% | -0.07% | 3.62% | 8.61% |
| STOXX Europe 50 (€) | -0.63% | -0.63% | 0.48% | 11.61% |
| STOXX Europe 600 (€) | -0.16% | -0.16% | 1.79% | 11.38% |
| MSCI EAFE Small Cap | 0.09% | 0.09% | 4.67% | 26.90% |
| FTSE 100 (ÂŁ) | 0.25% | 0.25% | 5.84% | 15.84% |
| FTSE MIB (€) | -1.39% | -1.39% | 4.92% | 26.30% |
| CAC 40 (€) | -0.38% | -0.38% | 0.21% | 7.03% |
| DAX (€) | -1.28% | -1.28% | -1.31% | 18.52% |
| SWISS MKT (CHF) | 1.50% | 1.50% | 3.77% | 9.90% |
| TOPIX (ÂĄ) | 0.98% | 0.98% | 8.88% | 11.50% |
| Nifty 50 | 1.29% | 1.29% | -2.68% | 4.64% |
| Hang Seng (HKD) | 1.36% | 1.36% | 6.19% | 26.71% |
| MSCI World | 0.37% | 0.37% | 4.37% | 14.55% |
| MSCI China Free | 2.00% | 2.00% | 11.66% | 28.62% |
| MSCI EAFE | 0.27% | 0.27% | 3.12% | 23.69% |
| MSCI EM | 1.42% | 1.42% | 4.97% | 21.29% |
| MSCI Brazil (BRL) | 0.54% | 0.54% | 2.74% | 19.27% |
| MSCI India (INR) | 1.62% | 1.62% | -3.89% | 2.05% |
Fixed Income
| (08/09/25) | 1 week % | 1 month % | 6 months % | YTD % | 1 year % | 2 years % |
|---|---|---|---|---|---|---|
| US dollar Adventurous | 0.17% | 1.14% | 10.03% | 12.47% | 13.12% | 33.87% |
| US dollar Performance | 0.32% | 1.70% | 9.97% | 10.17% | 12.32% | 31.06% |
| US dollar Blue Chip | 0.43% | 1.61% | 8.39% | 7.95% | 9.51% | 25.35% |
| US dollar Cautious | 0.56% | 1.51% | 6.59% | 6.78% | 6.59% | 18.91% |
| US dollar Defensive | 0.65% | 1.21% | 4.65% | 6.01% | 3.80% | 13.37% |
Blend Fund Performance Year To Date:
Blend Fund Performance Since Inception:
Direct Fund Name
| (08/09/25) | 1 week % | 1 month % | 6 months % | YTD % | 1 year % | 2 years % |
|---|---|---|---|---|---|---|
| Aditum Global Discovery | 1.50% | 3.57% | 11.13% | 12.39% | 11.67% | 29.10% |
| Aditum India Explorer Fund | 1.09% | 1.69% | 12.33% | 13.14% | - | |
| Ashoka WhiteOak India Opportunities | 0.72% | 1.97% | 10.85% | -3.80% | -5.17% | - |
| BlackRock GF World Healthscience USD | 0.22% | 5.28% | -6.06% | 1.93% | -9.81% | 5.96% |
| Emirates Global Sukuk | 0.03% | 0.54% | 2.97% | 4.88% | 3.87% | 10.86% |
| Emirates MENA Fixed Income | 0.11% | 0.92% | 3.10% | 5.95% | 3.02% | 13.95% |
| Emirates MENA Top Companies | -0.89% | -2.99% | -0.44% | 0.34% | 2.56% | 3.98% |
| Franklin Gold and Precious Metals USD | 8.99% | 21.53% | 67.95% | 110.57% | 110.57% | 168.08% |
| Harris Associates Global Equity | -0.19% | 1.90% | 3.97% | 12.55% | 12.03% | 18.45% |
| Loomis Sayles Global Growth Equity | 1.29% | 4.97% | 13.61% | 17.59% | 29.11% | 53.45% |
| Loomis Sayles Multisector Income | 0.52% | 1.35% | 4.42% | 6.55% | 5.89% | 17.59% |
| PineBridge Japan Small Cap Equity | 1.74% | 3.37% | 19.69% | 24.77% | 14.65% | 16.90% |
| UBAM 30 Global Leaders Equity | 1.10% | 1.75% | 5.71% | 8.22% | 6.67% | 21.08% |
| iShares US Corporate bond Index | 1.70% | 1.94% | 4.37% | 6.82 | 3.81% | 15.99% |
| iShares Developed World Index | 0.97% | 1.30% | 7.84% | 0.82% | 13.31% | 35.84% |
Zurich Managed Funds
| (08/09/25) | 1 week % | 1 month % | 6 months % | YTD % | 1 year % | 2 years % |
|---|---|---|---|---|---|---|
| US dollar Adventurous | 0.17% | 1.14% | 10.03% | 12.47% | 13.12% | 33.87% |
| US dollar Performance | 0.32% | 1.70% | 9.97% | 10.17% | 12.32% | 31.06% |
| US dollar Blue Chip | 0.43% | 1.61% | 8.39% | 7.95% | 9.51% | 25.35% |
| US dollar Cautious | 0.56% | 1.51% | 6.59% | 6.78% | 6.59% | 18.91% |
| US dollar Defensive | 0.65% | 1.21% | 4.65% | 6.01% | 3.80% | 13.37% |
Zurich Mirror Funds
| (08/09/25) | 1 week % | 1 month % | 6 months % | YTD % | 1 year % | 2 years % |
|---|---|---|---|---|---|---|
| Canaccord Genuity Balanced | 0.24% | 1.63% | 5.84% | 6.90% | 6.41% | 20.11% |
| Canaccord Genuity Growth | 0.20% | 1.90% | 7.25% | 7.46% | 7.87% | 22.38% |
| Canaccord Genuity Opportunity | 0.27% | 2.04% | 8.29% | 9.46% | 11.38% | 28.11% |
| Emirates Emerging Market Debt | 0.18% | 0.84% | 1.67% | 4.73% | 5.51% | 21.48% |
| Emirates Islamic Balanced Managed | 0.20% | 1.18% | 5.62% | 6.06% | 5.74% | 16.49% |
| Loomis Sayles US Growth Equity | 0.66% | 1.86% | 15.59% | 7.87% | 25.58% | 53.37% |
* Data is lagged by 1 day.
**Â Â Data is lagged by 2 days.