Fund watch

2025 Market outlook

It was a good 12 months for financial markets, with many international equity markets reaching record highs, while international bond markets also performed well as the world’s central banks began to cut interest rates in response to signs of easing inflation.

US equity markets again led the way with the S&P 500 Index and the Nasdaq 100 Index enjoying returns of 25% and almost 30% respectively. Both were spurred by gains in the ‘Magnificent 7’ – a group of companies that have had a stellar run on the back of continued optimism surrounding the uptake of artificial intelligence (AI).

Meanwhile, international bond markets initially had a good run as central banks began to bring interest rates lower. However, the rally stalled later in the year, as the US central bank signaled it was not in a hurry to cut rates further, given the resilience of recent economic data.

As we look ahead to 2025, the good news is that economic data suggests the US economy remains on a good path, while in New Zealand, further interest rate cuts should help spur the domestic economy, which struggled in 2024. For a look at our full 2025 Market Outlook, see below.

Read the full report

ANZ Investments 2025 Market Outlook (PDF 594KB)

This article has been prepared by ANZ New Zealand Investments Limited (‘ANZ Investments’) for information purposes only and it should not be treated as financial advice.

Superannuation Investments Limited is the issuer and manager of the SIL Mutual Scheme. ANZ Investments is the investment and administration manager. ANZ Investments is not an authorised deposit taking institution (ADI) under Australian law and investments in the scheme aren't deposits in or liabilities of ANZ Bank New Zealand Limited, Australia and New Zealand Banking Group Limited, or their subsidiaries (together 'ANZ Group'). ANZ Group doesn’t stand behind or guarantee ANZ Investments. Investments in the scheme are subject to investment risk, including possible delays in repayment, and loss of income and principal invested. ANZ Group won’t be liable to you for the capital value or performance of your investment.

Past performance does not indicate future performance, and performance can be negative as well as positive. This material is for information purposes only. We recommend seeking financial advice about your situation and goals before getting a financial product.

Investment and administration manager: ANZ New Zealand Investments Limited.