2025 Mid-Year Review – 11th July 2025

Global economic and financial market highlights

As we're now past the halfway mark of 2025, it's a fitting time to reflect on what has been a turbulent time in markets - marked by volatility, yet defined by remarkable resilience.

From escalating geopolitical tensions to rapid AI innovation, global markets have ridden a wave of unpredictability with resilience. We narrowly avoided a bear market in the US, saved by a record-breaking rebound.

"The first half of 2025 has undoubtedly been a busy time in markets. Volatility has been rife, with media coverage dominated by negative headlines. However, the market's rapid rebound, reminds us of the importance to not react to market movements and instead focus on our individual financial objectives." - Andrew Summers, Omnis Chief Investment Officer

Omnis Investments' latest mid-year review breaks it all down: the highs, the lows, and the pivotal moments shaping the investment landscape.

January

• Global markets surge leading up to the inauguration of Donald Trump.

• China’s DeepSeek unveils a new AI model, challenging US AI dominance.

February

• Investors rotate into European equities after a strong earnings season and growing concerns over fading US exceptionalism.

• Chinese equities rise on optimism around domestic AI advancements.

March

• US–China trade tensions dampen consumer sentiment.

• Germany responds to US policy with a major defence and infrastructure spending initiative.

April

• 2 April: Trump announces sweeping global tariffs—markets tumble.

• 9 April: 90-day suspension of tariffs (excluding China) triggers a market rebound.

May

• Markets continue upward trend as US–China strike a trade deal and US-EU progress eases inflationary concerns.

• Bank of England cuts interest rates by 0.25%.

June

• Escalation between Israel and Iran leads to US intervention and a ceasefire.

• Equities rally as inflation concerns and fears of contagion subside.

Source: Omnis Investments