After a shaky start to the year, global markets have been showing real signs of strength. From record highs in the UK and US, to steady growth across Europe and Asia, there’s been plenty of positive news for investors.
Our view stays the same: the strongest results come from letting investments grow over time, not reacting to short-term noise. If you’d like to know more, here’s a look at what’s been happening in different regions and what it could mean in the months ahead.
🇬🇧🇪🇺 UK & European Markets
The FTSE 100 has bounced back to a record high after a rocky start to the year. But the UK economy still shows some weak spots, with manufacturing under pressure and house prices struggling to grow. On the brighter side, mortgage approvals are rising, and the prospect of lower interest rates could give households and businesses some breathing room.
Across Europe, growth looks stronger. Greece, Spain and Italy are benefiting from healthier manufacturing and falling unemployment. For investors, that means opportunities both at home and across the continent. And because Octopus Money portfolios are globally diversified, you’re always connected to growth opportunities wherever they happen.
🇺🇸 US Markets
The S&P 500 hit a record high this summer, lifted by better-than-expected company earnings, which lifted investor confidence and helped drive the market higher.
It hasn’t all been smooth sailing, though. Concerns about inflation caused a dip in late August, and September is often a bumpier month for US stocks. So while the market has been performing well, it’s worth remembering that a little volatility is part of the journey.
🌎 Global Markets
Elsewhere, markets have also performed strongly. A weaker US dollar made many countries more attractive to global investors, boosting returns in places like China, Brazil, Mexico and South Africa. In Japan, the Topix index also reached a record high as worries about trade tariffs began to ease.
But the spring was a sharp reminder of how quickly markets can change. The sharp downturn in April triggered by tariff disputes saw the S&P 500 drop 10% and the Nasdaq fall 11% in just two days. That’s why global diversification matters: it spreads risk and helps smooth out the ups and downs. But it’s always worth remembering that markets can move in both directions quickly.
What this means for you
This summer delivered strong gains across global markets, from record highs in the UK, US and Japan to standout performances in Europe and emerging economies.
At the same time, challenges remain, from sluggish UK growth to persistent US inflation, proving that markets rarely move in a straight line.
The takeaway? Our view is always to stay focused on the long term. Diversification, patience and quality investments remain the best strategy.
This market update is for information only and isn’t a personal financial recommendation. If you’d like to talk about how it could apply to your own plans, you can book a free Intro Session with one of our financial experts. Remember, all investing carries risk. The value of your investments can go down as well as up, and you might get back less than you put in.
