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Wednesday 10 September 2025
Weekly Market Update
Overview
During the last week, global financial markets displayed cautious optimism amid U.S. macro data, Federal Reserve expectations, geopolitical developments, and corporate earnings. U.S. equities ended modestly higher, with the S&P 500 up ~0.3% and Nasdaq +1.1%, led by tech and AI sectors, while the Dow slipped 0.3%; 10-year Treasury yields fell to 4.08%, and gold rose toward $3,600/oz on safe-haven demand. Europe was mixed: the STOXX Europe 600 declined 0.2% amid rising bond yields and political uncertainty, while the FTSE 100 gained 0.2%, supported by homebuilders, precious metals miners, and selective banking stocks. Japan’s Nikkei 225 edged higher despite tech-sector pullbacks, though 30-year JGB yields hit 3.285%. China’s CSI 300 fell 2.1%, pressured by margin financing and regulatory scrutiny, though the PBOC injected ¥1 trillion liquidity to stabilize markets. India rose modestly on IT and pharma gains, despite ₹12,257 crore in FPI outflows. MENA markets were mixed: Dubai and Abu Dhabi indices advanced, Saudi TASI declined, and Egypt’s EGX30 rose 0.4%, with oil prices providing partial support amid OPEC+ supply adjustments. Commodities saw Brent at $65.95/bbl, WTI $61.87/bbl, and gold $3,355/oz. Currencies were notable for a weaker U.S. dollar (DXY 97.35) alongside gains in the euro, pound, and rupee. Overall, markets were shaped by Fed policy expectations, regional developments, selective corporate earnings, and safe-haven demand, resulting in cautiously optimistic equity trends, mixed commodities, and notable currency moves.
The Week Ahead
Mon: U.S., Consumer Credit (July)
Tue: EUR, Eurogroup Meetings
Wed: U.S., Crude Oil Inventories
Thu: EUR, ECB Interest Rate Decision (Sep)
Fri: UK,GDP (MoM) (July)
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.
Asset class forecasts*
[wpdatatable id=14]
*Source: Goldman Sachs (GS) Global Investment Research and GSAM as of January 2021.
Developed Markets
North America
During the last week, U.S. markets navigated a choppy yet constructive period: equities extended modest gains despite a weak jobs report that showed just 22,000 new positions added in August, well below expectations. This underperformance stoked bets on multiple Fed rate cuts, with S&P 500 futures hitting record highs and the actual index climbing roughly 0.3% for the week; the Nasdaq surged about 1.1%, while the Dow slipped 0.3% and the Russell 2000 gained about 1%. The S&P 500 and Nasdaq briefly tested new intraday records before retreating on Friday’s data-driven pullback. Bond markets responded sharply, with the 10-year Treasury yield sliding about 15 basis points to 4.08%. The U.S. dollar softened toward multi-week lows, while gold soared to fresh highs near $3,600/oz, reflecting safe-haven demand amid mounting Fed easing expectations. In the primary debt market, investment-grade companies raised nearly $70 billion in new bond issuance to lock in favourable financing ahead of anticipated rate cuts. Tech and AI stocks stood out: Broadcom shares jumped nearly 9% on upbeat guidance, Alphabet rallied on favourable court news, and AppLovin and Robinhood surged on prospects of S&P 500 inclusion. In contrast, Lululemon tumbled about 17% after cutting its earnings outlook.
Europe & UK
During the last week, European equities faced headwinds as rising bond yields, disappointing U.S. payroll data, and escalating political instability in France dampened investor sentiment. The STOXX Europe 600 edged down roughly 0.2% on the week, pushed lower on Friday by declines in energy and financial names amid weaker oil prices and cautious positioning. Technology provided a rare bright spot—helped by news of Cadence’s $3.16 billion acquisition of Hexagon’s engineering unit—lifting the tech sub-sector by about 0.8% on Friday. Sector-wise, travel and banks lagged, while homebuilders and resource-linked areas showed resilience. In the UK, the FTSE 100 posted a modest weekly rise of around 0.2%, though it slipped 0.1% on Friday as oil and banking names weighed on returns. Energy and banking sectors buoyed the market earlier in the week on the back of higher oil prices and renewed bank strength, while precious metals miners also gained traction. However, broader confidence remained constrained due to fragile fiscal outlooks, political turbulence, and elevated bond yields across Europe.
Japan
During the last week, Japan’s markets displayed notable volatility, driven by political upheaval and global macro influences. The Nikkei 225 fluctuated throughout the week—initially dipping amid global tech weakness and pre–Jackson Hole caution (falling about 0.9% midweek), but rebounding late as Prime Minister Shigeru Ishiba unexpectedly resigned, fueling speculation of a return to Abenomics-style stimulus; this optimism pushed the Nikkei close to, but not beyond, its August peak (~43,876), ending the period modestly higher. Meanwhile, long-term government bond yields surged, with the 30-year JGB yield hitting an all-time high of approximately 3.285% amid concerns over fiscal deficits and future spending policy shifts. Currency markets also reacted: the yen weakened against the dollar amid heightened political uncertainty and dovish monetary policy expectations, contributing to gains in Nikkei futures. Investors now watch closely for the outcome of the LDP leadership contest and upcoming BOJ decisions, which will shape the future trajectory of fiscal and monetary policy.
Emerging Markets
China
During the last week, Chinese markets experienced a sharp pullback amid heightened investor anxiety over speculative excess and potential regulatory intervention. The CSI 300 Index plunged approximately 2.1%, marking its steepest drop in five months, with AI and tech heavyweights like Cambricon leading the retreat amid market-wide profit-taking and mounting regulatory scrutiny—once again spotlighting a record margin financing level of roughly 2.3 trillion yuan (~$322 billion). In response, the PBOC injected a substantial ¥1 trillion liquidity via 3-month outright reverse repos on September 5 to ensure ample banking system funding and contain bond-market fallout. Meanwhile, bond markets showed resilience—the upcoming 30-day and 91-day Treasury bill auctions, including a freshly announced 91-day bill auction of ¥30 billion scheduled for September 10, reflect improving demand and controlled short-term yields. On the macro front, expectations for a U.S. Fed rate cut fuelled regional optimism, helping cushion some market pressure and boosting broader Asian equities including Japan and Hong Kong.
India
During the last week, Indian equities showed resilience despite ongoing foreign portfolio investor (FPI) outflows. The Nifty 50 index closed at 24,818.85 on September 5, while the BSE Sensex ended at 81,012.42. Notably, the IT sector led the rally, with Infosys announcing a share buyback plan, boosting investor confidence. The Nifty IT index rose by 2.3%, contributing significantly to the broader market gains. FPIs continued their withdrawal from Indian equities, with net outflows of ₹12,257 crore in the first week of September, extending the trend from previous months. This brings the total equity withdrawals for 2025 to approximately ₹1.43 lakh crore. The Nifty Pharma index demonstrated resilience, advancing by 0.54% on September 5. This growth was driven by strong performances in key segments such as cardiac and anti-diabetic medications, which collectively grew by 8.7% year-on-year in August.
MENA
During the last week, MENA equity markets showed mixed performance amid global and regional economic factors. Saudi Arabia’s TASI declined, pressured by concerns over crude oil oversupply and fading optimism for U.S. Fed rate cuts, while Dubai’s DFMGI and Abu Dhabi’s ADX posted modest gains, supported by slightly higher oil prices and stronger banking stocks, including Emirates NBD (+0.6%) and Abu Dhabi Commercial Bank (+0.9%). Qatar’s QSI slipped 0.6%, dragged lower by Qatar Islamic Bank, whereas Egypt’s EGX30 rose 0.4%, boosted by a 2% gain in Commercial International Bank. Overall, oil price strength following OPEC+’s restrained production increase provided partial support, but mixed corporate earnings and caution over global monetary policy kept investor sentiment tentative across 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 $69.14 per barrel on September 1 to $65.95 on September 5, while WTI crude oil prices decreased from $65.59 to $61.87 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 influenced by economic data and expectations surrounding U.S. Federal Reserve policy. The U.S. Dollar Index (DXY) declined from 97.77 on September 1 to 97.35 on September 9, reaching its lowest level in nearly seven weeks. This depreciation was driven by weaker-than-expected U.S. employment data, which heightened expectations for a Federal Reserve interest rate cut. Markets are now pricing in an 89.4% probability of a 25 basis point rate cut at the upcoming September meeting. In contrast, the euro (EUR/USD) strengthened during the same period. The exchange rate rose from 1.1711 on September 1 to 1.1769 on September 9, reflecting a 0.5% increase. This appreciation was partly due to the dollar’s weakness and political instability in France, which capped euro gains. Other currencies also gained against the dollar. The British pound (GBP/USD) rose to $1.3585, its highest level since mid-August, driven by shifting expectations around U.S. interest rate policy. The Indian rupee (INR/USD) strengthened to 88.1250, recovering from a record low, as declining Treasury yields and expectations of a Fed rate cut supported emerging market currencies. Overall, the week saw a weakening U.S. dollar amid expectations of dovish Federal Reserve policy, while other major currencies, including the euro, British pound, and Indian rupee, appreciated against the dollar.
Commodities
| Name | 05/09/25 | 31/08/25 | 30/06/25 | 31/12/24 |
|---|---|---|---|---|
| WTI Oil ($/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 | $3.63 |
Currency
| Name | 05/09/25 | 31/08/25 | 30/06/25 | 31/12/24 |
|---|---|---|---|---|
| Euro (€/$) | 1.1717 | 1.1686 | 1.1787 | 1.0354 |
| Pound (£/$) | 1.3509 | 1.3504 | 1.3732 | 1.2516 |
| Japanese Yen (Â¥/$) | 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 (£) | 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 (Â¥) | 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
| Name | 1 Week | MTD | QTD | YTD |
|---|---|---|---|---|
| Bloomberg US Aggregate | 0.93% | 0.93% | 1.86% | 5.96% |
| Bloomberg Euro Aggregate | 0.58% | 0.58% | 0.10% | 14.42% |
| Bloomberg US High Yield | 0.32% | 0.32% | 2.03% | 6.69% |
| Bloomberg Euro High Yield (€) | -0.07% | -0.07% | 1.34% | 3.67% |
Blend Fund Performance Year To Date
Blend Fund Performance Since Inception
Direct Fund
| (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.