A picture of the earth taken from space: a symbolic image of global events on the financial markets.
Insights | CIO Update

A balancing act

Balancing opportunity with prudence.

Published on 01.07.2025 CEST

Macroeconomic update for July 2025

Equity markets continue to hit new highs, shrugging off geopolitical tensions and trade negotiations. The Eurozone and emerging markets (EM) are leading the rally, fueled by domestic stimulus efforts. In the US, moderating inflation and the potential for further tax cuts are keeping consumer sentiment buoyant. But what’s going on with the weakening US dollar? And what does this all mean for the Multi Asset Boutique’s asset allocation? Find out in the latest CIO Monthly video, where you’ll hear about their views on the latest developments.  

Key Takeaways

1. US consumers
Moderating inflation and the prospect of further tax cuts as part of US President Donald Trump’s “One big beautiful bill” has helped keep consumer demand strong.

2. Quo vadis, US dollar?
Even as markets grind higher, the US dollar continues its decline, partly amid political pressure on the US Federal Reserve and speculation around future leadership.

3. Equity valuations
High stock valuations suggest that a short-term correction is possible, in our view. We remain ready to deploy our cash holdings once markets consolidate.  

Even the smallest undertaking starts with a conversation

Are you looking for access to our experts?

We look forward to answering your questions.
+41 58 283 60 05Contact us

Published on 01.07.2025 CEST

ABOUT THE AUTHORS

  • Dan Scott

    Dan Scott

    Head of Multi Asset, CIO

    Dan Scott joined Vontobel in 2017. He is Head of Multi Asset, serving both institutional and private clients. Prior to joining Vontobel, he worked for many years at Credit Suisse as Deputy Head of Equity Research and at Kepler as a Swiss equity specialist. He began his career as a journalist in the late 1990s, first at Dow Jones & Company as a staff reporter for the Wall Street Journal, Barron’s, and DJ Newswires, and later as an on-air correspondent for CNBC.

    Show more articles

Share

Share