Bénédicte Kukla Chief Strategist, CA Indosuez Alexandre Drabowicz Chief Investment Officer, CA Indosuez 2025: A WORLD IN TRANSFORMATION The year 2025 was marked by a dramatic acceleration in economic, political, and technological shifts. The speed of these changes caught many analysts off guard, as financial markets navigated an environment defined by heightened volatility, rising geopolitical uncertainty, and the reconfiguration of global value chains. Despite the challenging context, global economic growth proved resilient. Innovation remained a key driver, fuelled by the remarkable rise of artificial intelligence, which has measurably contributed to the dynamics of trade and investment. The United States demonstrated notable strength, underpinned by strong consumer spending and sustained investment activity. Meanwhile Asia has emerged as a central hub of globalization, driven especially by China, South Korea, and Taiwan. In Europe, the partial withdrawal of the United States has contributed to greater economic unity and prompted the initiation of new investment programmes, particularly in Germany with a stronger focus on infrastructure and defence. More generally, European capital markets have seen renewed attractiveness, while the euro appreciated by over 10%, reflecting increased investor confidence in the stability of the region and its institutions. The exceptionalism of the US economy persists, with global portfolios — including our own — continuing to focus strongly on US assets. Nevertheless, growing scepticism regarding the dollar has led investors to actively manage currency risks and partially hedge their positions. This shift has also sped up central banks' efforts to diversify their reserves, with a rising interest in gold. At the same time, the renminbi is gaining influence in global trade, and the growth of Chinese technology has further broadened investor interest in emerging market assets. 2025 Review and 2026 Financial Market Outlook CFM Indosuez Wealth Management 18
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