Markets rise in June amidst increase in geo-political tensions

Select Wealth Management – Monthly View – July 2025

A calming of trade tensions between the US and China, a quick resolution to the Israel – Iran conflict, and the prospect of the US Federal Reserve (Fed) cutting interest rates allowed US share markets to rise in June.

As the year progresses US policy uncertainty is expected to diminish as the Trump administration focusses more on their pro-growth policies, such as deregulation, in the run up to the mid-term elections scheduled for 2026.

There has been a divergence in performance of the Magnificent 7 since the beginning of the year, with Meta Platforms, Microsoft, and Nvidia outperforming.

Along with the US markets, emerging markets also performed well in June.

New Zealand’s share market rose 1.5% in June with listed property continuing its outperformance of the broader market. The New Zealand and Australian economies appear well placed relative to the rest of the world in the current uncertain global economic environment, with the local fixed income market also less sensitive to rising global longer-term interest rates.

In contrast, markets across Europe were weaker in June after strong outcomes in May.

Select Wealth Management’s Monthly View (July 2025) is available at this link.