Market Updates

First and foremost, we would like to wish you a happy, healthy and prosperous 2025. We’re using the first weekly market update of 2025 to answer some questions we’ve received following the release of our 2025 Market Outlook.

The US Federal Reserve (Fed) delivered a ‘hawkish’ quarter-point interest rate cut to bring the key policy rate target range to 4.25-4.50%. While investors expected this move, what’s new is that the US central bank also signalled a slower pace of rate reductions: the policy statement was updated to include the consideration of the “extent and timing” of additional adjustments.

After around 14 years of civil war, the fall of Bashar al-Assad’s regime in Syria has caught the world by surprise. Initial market reactions have been muted. Oil prices have risen by around USD1/bbl, while other markets (global equities and currencies) haven’t budged, suggesting the unfolding of events in Syria is not causing any worries in financial markets.

We’re not yet into the festive season but markets were relatively quiet last week and could be again this week, as the economic calendar is relatively light. However, there were some geopolitical jitters. Tensions flared up between Russia and Ukraine, causing a reaction in the commodity market.

Donald Trump, the 47th president-elect of the USA, has been given a strong mandate. He won both the electoral college and popular vote, while his Republican party secured a majority in both chambers of Congress.

Although not yet fully certified, Trump has secured a clearer victory than initial polls indicated. The election resulted in a ‘Red sweep’, with a Republican majority in both chambers of Congress.