Welcome to the December 2025 issue of Quarterly Market Commentary from Fitch & Fitch Wealth.
The final quarter of 2025 began with volatility across global markets. Persistent inflation and the prospect of higher rates for longer led to a sharp rise in bond yields and a broad sell-off in September and October. However, November marked a turning point, as softer inflation data and a more dovish tone from central banks triggered a rally across both equities and fixed income
United Kingdom
UK equities were weighed down by stubborn inflation and subdued economic expectations. While large-cap companies held their ground, domestically focused stocks struggled as investors grew cautious about household spending and growth prospects.
Europe
The Eurozone showed signs of contraction, with data pointing towards recession. Yet a sharp fall in inflation towards year-end helped restore some confidence, as markets began pricing in potential rate cuts from the European Central Bank.
United States
US markets were unsettled through October, led by weakness in technology stocks. A strong rebound followed in November as investors gained confidence that the Federal Reserve may have reached the end of its rate hike cycle.
Japan
Japanese equities continued their upward momentum, supported by robust corporate earnings and fading deflation risks. A weaker yen provided an additional boost to large exporters.
Asia ex-Japan and Emerging Markets
Performance across Asia ex-Japan was mixed, with China facing ongoing economic headwinds. Other regional markets gained from the global tech rebound and improved investor sentiment. Emerging markets followed a similar path — weak early on, then rallying as the US dollar softened and rate expectations shifted.
Bonds
Bond markets saw yields climb to decade highs before falling sharply in November. As inflation cooled and central banks adjusted their messaging, fixed income staged a notable recovery, delivering strong returns.
Read Here – Quarterly Market Commentary – December 2025
Looking ahead
Markets remain sensitive to inflation, policy decisions, and growth indicators. As central banks begin signalling a pivot, the coming quarter could offer new opportunities — but risks remain.
If you would like to review your portfolio or discuss your investment strategy, we would be pleased to arrange a conversation. Contact us on 020 7859 4098.
Fitch & Fitch Wealth
Fitch & Fitch Wealth Ltd is an Introducer Appointed Representative of Nott PyBus and Associates Ltd, which is authorised and regulated by the Financial Conduct Authority (FCA) number 147535 . Our role as an IAR is limited to introducing potential clients to Nott PyBus and Associates Ltd. We do not provide any financial advice or engage in any other regulated activities. All financial services and advice are provided by JLM Network Wealth Ltd FCA 991615 as an Appointed Representative of Nott Pybus and Associates Ltd.