Quarter in Review Q2 2025

• Quarter in review
• 08.07.25
• Lenny McLoughlin

Key themes    

• The US relaxed some of the aggressive “Liberation Day” tariffs it announced in April, helping to ease global growth concerns
• Global equities recovered from heavy losses as trade tensions and recession fears receded.
• Government bond returns were positive due to falling bond yields, with the European Central Bank (ECB) reducing rates further in Q2.  

Markets snapshot    

• The MSCI All Country World index rallied by 9.5% (2.8% in euro terms) in Q2.

• The MSCI USA gained 11.4% (2.5% in euro terms).  

• The MSCI Europe ex-UK rose by 3.6% (3.7% in euro terms).  

• The 10-year German Bund yield fell by 10bps to 2.60%.

• The ICE BofA 5+ Year Euro Government bond index returned 2.3%.