Therefore,
Financial markets, what expect second:
L’shareholder He was the protagonist of the 1st semester of 2025. Moreover, with the main equity markets that recorded positive performances. Therefore, What to expect now in the second half of the year?
Chris Iggo – Chief Investment Officer di AXA IM Core – emphasizes the The task of central banks. Moreover, “Although the monetary authorities move with caution. Consequently, the risks remain multiple: from a possible rebound of the inflation pulled by energy, to the impact of the US duties on growth and corporate profits.”, The expert hypothesized.
In the following analysis, the expert provides some Perspectives for equity and bond wallets in the second half of 2025.
With the conclusion of the post-covid monetary cycle cycle, The markets find themselves dealing with a new context dominated by uncertainty. Furthermore, The global economy is increasingly influenced by financial markets, what expect second shock from the offer side – from international trade to geopolitics – which reduce space for an active management management. Nevertheless, complicate the task of central banks.

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Although the monetary authorities move with caution, the risks remain multiple: from a possible rebound of the inflation pulled by energy, to the impact of US duties on growth and corporate profits. Moreover, In this fragile scenario. Moreover, characterized by prizes for the risk increasing and greater volatility, the approach to the markets must be selective, flexible and aware of the structural nature of the tensions in progress.
Inflationary risks – Financial markets, what expect second
The attention of investors is focused on oil and next data on US inflation. Furthermore, Shortly before the attacks of the USA against Iran. Moreover, the price of crude oil had increased by 25% in the month of June alone, making the wholesale prices of petrol rise. This inflationary shock financial markets, what expect second has been arrested for now thanks to the ceasefire. but the situation in the Middle East remains very fluid. In addition. it is believed that the effects of the duties already introduced will begin to manifest themselves in concrete economic data in the coming months. As a result, there is a risk that headline inflation in the United States exceeds 3% again already this summer. In this case, at the Fed it will be even more difficult to cut the rates.

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The risk for the US bond market is that the expectations for two cuts by the end of 2025 – currently prized – with consequent increase in yields along the entire curve. Unless a clear slowdown in economic activity. obvious signals of weakness on the labor market, long -term fixed income tools will probably continue to undergo.

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Bond market: buying on the falls in credit
Credit markets financial markets, what expect second have shown a remarkable resilience in recent years, reflecting the improvement of corporate financial statements. One of the most frequent questions among investors concerns precisely if. in the face of the deterioration of public finances, The improvement of the fundamentals of the private sector justifies a scenario of structurally compressed credit spreads. However, as we have seen in April, in the case of macroeconomic shock the spreads tend to widen quickly. A new escalation in the Middle East, accompanied by fears for growth and inflation, could trigger a similar reaction. The credit demand, however, remains very solid thanks to the current levels of performance. We therefore believe that credit markets can benefit from a purchase strategy on the discounts. offering investors the opportunity to block higher returns and at the same time improve the quality of the credit in wallet.

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Making forecasts for individual regions or countries is difficult in financial markets, what expect second a context in which risk aversion movements tend to be highly correlated. It is equally complex to reconcile a worsening of the fundamentals with flows guided mainly by the sentiment. The trend of the dollar is an example: the green ticket weakened in 2025 for multiple reasons that could. continue to weigh in the coming months. However, the dollar is historically seen as a refuge currency in moments of geopolitical uncertainty. Other currencies that could benefit from greater caution by investors include the Swiss franc (already very strong). the Japanese yen. Even gold should maintain its bullish trend.
Share market: greater volatility in sight?
The European share markets have clearly overperformed the US ones in the first part of the year. The relative assessments. the uncertainty about the US economic policy and the expectations of a tax impulse in Europe contributed to this result. However, European economies remain financial markets, what expect second vulnerable to a possible energy shock, while the United States are now clear exporters of energy. A prolonged period of high oil prices could compromise the prospects of profits in Europe and other markets. On the other hand. higher energy prices should provide further momentum to investments in renewable energies, for the benefit of companies active in the production of solar and wind systems and in the associated electrical distribution infrastructures.

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It would be surprising if the combination of commercial duties, large budget deficits and a military conflict in the Middle East did not end up shaking the financial markets. The equity. credit markets are the most exposed to a discounted revision of the growth prospects and company cash flowswith the US equity market that risks losing more in terms of evaluations. Even in the absence of an escalation – in the event that Iran. the United States manage to financial markets, what expect second find a stale diplomatic solution on the alleged enrichment of the uranium – the rising potential for risky assets, however, appears limited by high evaluations and possible negative events on the economic policies front. A greater geographical diversification of equity wallets. which therefore reduces absolute exposure to the United States, is an increasingly recurring theme among investors. On the bond front. with the firm Fed and the ECB that seems to have “concluded” the cycle of cuts – at least for now – the current levels of performance will continue to offer investors a modest but constant flow of income.
The second half of 2025 promises to be demanding for the markets. In many asset classes. the returns of the first six months have already been higher than expected for the entire year.

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Forbonddiversified global strategies should continue to generate interesting results, while short -term strategies and those financial markets, what expect second related to inflation seem particularly suitable in this context.

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On the side stockthe strong performance of European titles has reflected the expectations of a tax stimulus arriving from Germany and the significant gains of the defense sector. However. it is not at all obvious that, in case of a new geopolitical macro shock, these returns can be maintained.
Financial markets, what expect second
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