Key Takeaways:
Standard Chartered predicts USD strength overall in 2025 after early weakness
Surge in interest rates and USD since October 2024 could challenge economic growth
Skepticism regarding effectiveness of tariffs in promoting growth in the short term
USD expected to resume upward trajectory once fiscal and tariff measures are defined
Long-term USD strength influenced by productivity and structural factors
Increased US demand may have negative spillover effects on the rest of the world- Trump 2.0 predicted to impact the US dollar with high tariffs and deficit reductions
Nvidia’s revolutionary chip could propel the company to record profitability- China expected to provide massive fiscal initiatives, boosting its economy and commodity prices
Bio-printed human hearts could revolutionize healthcare, sparking growth in biotechnology
OPEC’s relevance could diminish in 2025, leading to a plunge in oil prices which may benefit various industries
Rising power demands lead to a surge in US investment in power infrastructure
Catastrophic storm in the US forecasts an insurer collapse due to underestimated climate risks
Fresh fiscal policies in the UK expected to drive sterling back to pre-Brexit levels against the euro- Investors may expect significant widening of rate differentials against countries with poor growth prospects
BofA Global Research expects 2025 to be a year of further equity market strength amid macro uncertainty.- BofA economists and strategists predict the US economy will continue to outperform, with the S&P 500 reaching 6666 by year-end.
US equities are expected to start the year strong and end 2025 at 6666, with policy changes impacting the rest of the world as well.- International opportunities may arise, with European stocks forecasted to rebound by year-end 2025 and China utilizing domestic stimulus measures to counter trade policy changes.
Key macro calls are being made for the markets and economy in the year ahead by BofA Global Research.
USD and Economic Growth Forecasts
- Standard Chartered predicts USD strength overall in 2025 after early weakness
- Surge in interest rates and USD since October 2024 could challenge economic growth
- USD expected to resume upward trajectory once fiscal and tariff measures are defined
- Long-term USD strength influenced by productivity and structural factors
- Trump 2.0 predicted to impact the US dollar with high tariffs and deficit reductions
- Investors may expect significant widening of rate differentials against countries with poor growth prospects
Global Market Impact
- Increased US demand may have negative spillover effects on the rest of the world
- China expected to provide massive fiscal initiatives, boosting its economy and commodity prices
- International opportunities may arise, with European stocks forecasted to rebound by year-end 2025 and China utilizing domestic stimulus measures to counter trade policy changes
Technological Innovations and Industry Trends
- Nvidia’s revolutionary chip could propel the company to record profitability
- Bio-printed human hearts could revolutionize healthcare, sparking growth in biotechnology
Energy and Climate Risks
- OPEC’s relevance could diminish in 2025, leading to a plunge in oil prices which may benefit various industries
- Catastrophic storm in the US forecasts an insurer collapse due to underestimated climate risks
Policy Changes and Market Predictions
- Fresh fiscal policies in the UK expected to drive sterling back to pre-Brexit levels against the euro
- BofA Global Research expects 2025 to be a year of further equity market strength amid macro uncertainty
- BofA economists and strategists predict the US economy will continue to outperform, with the S&P 500 reaching 6666 by year-end
- US equities are expected to start the year strong and end 2025 at 6666, with policy changes impacting the rest of the world as well
- Key macro calls are being made for the markets and economy in the year ahead by BofA Global Research
In 2025, a mix of economic forecasts, technological advancements, market trends, and policy changes are expected to shape the global landscape. From predictions of USD strength and challenges to economic growth, to the impact of technological innovations like bio-printed human hearts and Nvidia’s revolutionary chip, the year is poised to be dynamic and transformative. International opportunities may arise while energy and climate risks continue to be areas of concern. With policy changes in various countries, including the UK’s fresh fiscal policies and the impact of BofA Global Research predictions on the equity markets, 2025 is set to be a year of significant developments across different sectors.