Optimism abounds

Macroeconomic update for October 2025

Markets have crept to new highs, and the reasons for this optimism are manifold. Growth prospects have improved, with the vast majority of central banks now in a rate-cutting cycle. At the same time, leading indicators from the private sector remain positive as business sentiment is solid in the US and the Eurozone. Fiscal policy is providing support as well: many governments (with the exception of Switzerland) are running deficits and increasing spending, which in turn is poised to boost growth. Finally, the boom in artificial intelligence (AI) is fueling both investment and productivity gains. The Multi Asset Boutique shares its views on latest trends in the CIO Monthly video.

Key Takeaways

1. Supporting growth  
The vast majority of major central banks is in a rate-cutting cycle, with the US Federal Reserve recently joining its peers in cutting rates this year.

2. AI boom
We believe the AI boom is not to be ignored. The boom in corporate spending also brings productivity gains, which are expected to increase further.

3. Equities on the rise
We hold a constructive view on equities, with fiscal stimulus and selective compelling regional valuations providing support.

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