June 2025 Market Summary

Global markets in June 2025 staged a broad-based recovery, buoyed by easing geopolitical tensions, improving trade relations, and growing optimism around monetary policy paths. A ceasefire between Israel and Iran, announced in the final week of the month, helped stabilise oil prices and dampen inflationary pressures across key importing regions. Meanwhile, long-awaited trade agreements between the U.S., China and the EU lifted investor sentiment, particularly in Asia and Europe.

Indices

Here is some of the top indices around the world performed in the year leading up to 1 July 2025:

FTSE 100: 6.93%
S&P 500: 13.33%
STOXX Europe 600: 5.21%
Nikkei 225: 0.90%

United Kingdom

The Bank of England’s Monetary Policy committee voted on the 18 June to maintain the base rate at 4.25% in a 6-3 vote, with three members voting to cut rates by 0.25%. Bank of England Governor Andrew Bailey highlighted that global instability and trade uncertainty are weighing on UK business confidence and investment. While inflation has recently ticked up due to energy and regulated prices, underlying pressures are easing as the labour market softens and wage growth slows. Bailey emphasised that although interest rates are expected to fall gradually, monetary policy will remain cautious and data-driven to ensure inflation returns sustainably to the 2% target.

United States

The S&P 500 reached record highs at the end of June, following a dramatic drop in the market in April caused by Trump’s tariffs announcements. The markets have been slowly recovering, but in final week of June, President Trump announced a ceasefire between Israel and Iran, ending a 12-day war between the regions, as well as confirming on Thursday 26 June that the U.S. and China had finally signed a trade agreement, with US and global markets responding positively.

Asia

Asian markets surged in June 2025, fuelled by improved global sentiment, easing geopolitical risks and strengthening trade ties. The MSCI Asia-Pacific ex-Japan index reached its highest level since 2021, while Japan’s Nikkei climbed to a five-month high, driven by tech and manufacturing. China and the U.S. agreed to a rare-earth trade deal and eased tariffs, lifting Chinese equities and sending the Hang Seng up over 21% year-to-date. India’s markets remained strong amid solid domestic growth and robust foreign inflows.

Oil prices fell following a ceasefire between Israel and Iran, reducing inflationary pressures for major Asian importers. This supported dovish central bank tones across emerging Asia. Asian currencies, including the rupee and won, appreciated as the U.S. dollar weakened on expected Federal Reserve rate cuts. Hong Kong’s IPO market also rebounded, raising $12.8 billion in H1 2025, with renewed interest ahead of Shein’s anticipated listing boosting investor confidence.

Europe

In June 2025, European markets experienced a volatile month, ultimately ending slightly lower as geopolitical tensions, particularly between Israel and Iran, weighed on investor sentiment mid-month before easing later with a ceasefire.

Business sentiment in the eurozone weakened in June, driven mainly by lower confidence in industry, retail, and consumers. The economic sentiment indicator eased to 94 in June from 94.8 in May. A separate measure of consumer confidence fell 0.2 points to -15.3.

As markets look ahead to the second half of 2025, attention is firmly fixed on central bank actions, geopolitical developments and corporate earnings. While risks remain, including lingering inflation concerns and political uncertainty in the UK and U.S., June’s developments have laid a foundation for cautious optimism. The interplay between stabilising macro conditions, softening monetary policy and reinvigorated global trade will be critical in shaping the investment landscape in the months to come.