The Global markets could close 2025 with an average increase of 10% in stocksaccording to Citigroup strategists. This optimistic outlook is supported by solid economic and business growth, although questions remain about the Trump administration’s economic policies and other global challenges.
A rebound supported by corporate profits
Citi strategist Beata Manthey highlighted that corporate earnings growth, also estimated at 10%, is a key driver for the stock. According to their projections, economic resilience will allow profits to expand beyond the technology sector, which dominated the market in recent years.
“The macroeconomic outlook continues to support further growth in corporate earnings and equity market gains,” Manthey explained in a recent note.
The role of the United States and Europe in the market
While the US market continues to be the center of attention, Citi is betting on Europe as the ideal region to diversify investments. Sectors linked to the economic cycle, such as industrial and financial, are highlighted as attractive to investors.
In this context, the S&P 500 continues to show strength, but faces the challenge of extending its gains to sectors beyond technology. In 2024, stocks of big tech companies, dubbed the “Magnificent Seven” (such as Apple, Microsoft and Nvidia), led the rally thanks to the artificial intelligence revolution. According to Manthey, this concentration of profits could be diluted in 2025, which would favor more balanced growth.
Global risks and tensions
Despite the optimism, there are risk factors that could slow the market’s advance:
-
Trump’s trade policies: The possibility of new tariffs by the United States could generate tensions in global trade. Manthey warned that a softer stance on tariffs and a weak dollar would be necessary to boost international markets.
-
Uncertainty in Europe: Political tensions and economic challenges on the European continent could also affect projected growth.
-
Slowdown in China: The stagnation of the Chinese economy remains a key factor that could limit the appetite of international investors.
The experts’ view on rates and the dollar
Another crucial point for the markets in 2025 will be the behavior of the dollar and interest rates. One of the keys, according to Citi, will be to achieve clarity about Trump’s policies and their impact on international dynamics.
Conclusion: a key year for equities
Despite global tensions and challenges, 2025 could be a positive year for equity markets. With an estimated growth of 10%, both in corporate profits and stock market returns, investors have reason to look optimistically into this new year, always attentive to economic policies and the ability of markets to diversify beyond traditional sectors.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
