London: Global financial markets closed 2025 on a positive note, showing resilience despite geopolitical tensions, trade policy worries and mixed economic signals from major economies.
According to an analysis by Reuters, global stocks delivered double digit gains for the third consecutive year, supported by expectations of interest rate cuts, strong performance in technology shares and steady consumer demand in key markets.
United States stock markets led the rally. Major indices such as the S and P 500 and the Nasdaq ended the year with solid annual gains, even though trading in the final days of December was subdued due to the holiday season. Investors remained cautious toward the year end, booking profits after a long rally.
Gold emerged as one of the strongest performers of 2025. Prices climbed close to record highs as investors looked for safe assets amid global uncertainty, including conflicts, tariff disputes and political developments. The strong demand for gold also reflected expectations that central banks may ease monetary policy further in 2026.
The US dollar weakened over the year, helping boost global equities and commodities. A softer dollar made emerging market assets more attractive and supported capital flows into Asia and Europe.
Oil prices, however, lagged behind other asset classes. After early gains, crude prices came under pressure due to concerns over global demand and higher supply levels. Cryptocurrency markets also saw uneven performance, with sharp swings and weaker momentum toward the end of the year.
China’s economy showed mixed signals. While much of 2025 was marked by slow growth, factory activity returned to slight expansion in December, helped by festive stockpiling ahead of the Lunar New Year. At the same time, trade measures and domestic protection policies continued to influence investor sentiment.
Market participants are now looking ahead to 2026 with cautious optimism. Expectations of interest rate cuts by major central banks, especially the US Federal Reserve, are supporting confidence. However, investors remain alert to risks from geopolitics, trade proving challenging and possible shifts in economic policy.
Overall, 2025 closed as a year of strong recovery and resilience for global markets, even as uncertainties continue to shape the road ahead.