US consumer confidence index rose sharply, and above expectations, in May to 98.0, mainly due to a temporary trade truce between the US and China on tariffs. Expectations about the near future also improved.
Equity investors will have to cope with greater trade protectionism and regional rivalry, delayed climate transition, and technological transformation in the next decade. In our 2025 Capital Market Assumptions – which examine long-term return expectations for 40 global asset classes – we see shifting dynamics across equity markets, characterised by strong earnings growth in select regions, tempered by valuation challenges.
“As US debt and fiscal deficits rise, leading to higher volatility in government bonds, investors should favour a global approach and explore opportunities in European bonds.”