Global stock markets set for gains in 2025 amid inflation concerns

Global stock markets are expected to rise in 2025, led by U.S. equities, despite concerns over inflation and potential trade tensions if new U.S. president returns to the White House, The Guardian reported.

Analysts predict the S&P 500 will climb about 9%, reaching 6,500 points by year-end, according to Bloomberg data. Deutsche Bank is more bullish with a target of 7,000 points, while UBS expects a slower start to the year but stronger gains in the latter half.

In the UK, the FTSE 100 is forecast to rise to 8,500 points, a 5% gain, with AJ Bell projecting an even higher target of 9,000. European markets are expected to lag, with Goldman Sachs predicting modest returns for the STOXX 600 index.

A Deutsche Bank survey identified trade wars, tech stock volatility, and persistent inflation as the key risks to markets in 2025. Interest rate policies may also diverge, with the U.S. Federal Reserve now expected to make only two rate cuts, down from earlier projections of three.

Despite the uncertainties, investors remain cautiously optimistic about a “slow grind higher” in equities, driven by resilient market fundamentals.