The TRADE predictions series 2025: A macro outlook on the markets
The coming change in US administration will see a front-loaded agenda of policy change in 2025. The reaction function of policy makers will be tested, with multi-lateral negotiations to be expected between the US and its trading partners – with uncertain results and even incongruent outcomes relative to current expectations. Adding to this, varying enthusiasm by central bankers and Treasury officials to lean on monetary and fiscal policy levers to stabilise growth, will see policy divergence and more importantly, policy miscalculation as the central theme over 2025.
Kaisha Schnoll, Assistant Vice President, Trade Settlements at STP:
In 2025, emerging markets are poised to play an increasingly significant role in global trading. As the world shifts toward digital and automated trading systems, emerging markets will benefit from enhanced access to international capital, driven by technological advancements and the growing integration of global financial systems. This evolution offers new investment opportunities, particularly in sectors such as technology, energy, and infrastructure.
However, the rise of emerging markets trading brings its own set of challenges. Regulatory environments are often less developed, which may pose risks for international investors. Additionally, volatility in local currencies, political instability, and liquidity constraints could dampen investor confidence. Emerging markets may also face challenges in adopting the fast-paced, high-tech trading strategies common in developed markets, making infrastructure upgrades and regulatory reforms crucial.
Despite these risks, the potential for high returns continues to attract investors, particularly in regions like Asia, Latin America, and Africa. As countries improve governance, market transparency, and financial sector development, the attractiveness of emerging markets will continue to grow. By 2025, the focus will be on balancing growth with risk management, making emerging markets a key area of interest for global traders and investors alike.
Read Kaisha’s and other industry experts’ comments in the Trade News article.
