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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

CGC Releases Q4 2025 Global Equity Market Insights

CGC has published an in-depth analytical report on global equity markets for the fourth quarter of 2025. The report highlights key opportunities across major markets worldwide, offering investors valuable reference points for the critical year-end trading season. Below is a summary of the report’s core findings.

United States: Driven by Policy and Technology

The U.S. market is expected to remain dynamic in Q4 2025. Policy continues to act as a catalyst: under the influence of Trump-era measures, several European nations have increased defense and infrastructure spending. This not only stimulates related sectors in Europe but also creates spillover effects that benefit the U.S. market. Rising defense orders and progress in infrastructure projects are injecting fresh growth momentum, attracting both domestic and international investors.

Technology stocks remain a focal point. After the “Magnificent Seven” outperformed in 2024, driven by election outcomes and policy expectations, attention in 2025 is shifting toward small- and mid-cap technology companies. Firms with strong fundamentals and innovative capacity—particularly in artificial intelligence and semiconductors—may provide attractive opportunities. In addition, record-level share buybacks in late 2024 could expand further in 2025 if corporate earnings remain robust, offering an additional pillar of support for U.S. equities. Investors are advised to watch companies with strong buyback histories and future potential.

Europe: Economic Recovery and Policy Support

According to CGC’s report, Europe also presents compelling opportunities in Q4 2025. With the European Central Bank keeping interest rates unchanged, markets view this as a signal that economic recovery may be approaching. Optimism surrounding European equities is rising, and a sustained recovery could translate into a positive market impact.

Policy remains another growth driver. European nations are stepping up defense and infrastructure investments under external geopolitical pressures. This trend supports related industries and opens new growth points for the equity market. Companies in defense and infrastructure stand to benefit, offering investors high-quality stock-picking opportunities within these sectors.

Asia-Pacific: Emerging Markets and Japan as Dual Engines

The Asia-Pacific region shows strong growth potential heading into Q4 2025. Emerging markets continue to benefit from structural reforms and consumption upgrades, providing investors with abundant opportunities. The MSCI World ex-USA Index, which tracks developed markets outside the U.S., has outperformed the S&P 500 while trading at lower valuations, further enhancing its appeal.

Japan is also a major focus. The Bank of Japan maintains an accommodative monetary stance, while clear signs of recovery are visible—rising inflation, improving corporate earnings, and stronger shareholder returns via buybacks and higher dividends. These factors may further support Japanese equities throughout Q4 2025.

Global Market Trends: Defensive and Energy Sectors as Dual Safeguards

CGC identifies defensive and energy sectors as the two global themes for Q4 2025. Rising risks of a global recession are boosting demand for defensive sectors such as healthcare, utilities, and consumer staples, which offer relative stability and serve as safe havens. As economic uncertainty increases, their attractiveness is likely to rise further.

Meanwhile, the energy sector is regaining momentum. Although higher interest rates have raised financing costs and weighed on energy stock performance, the long-term energy transition remains irreversible. With global recovery and rising demand, the energy sector may find new growth opportunities in Q4 2025. Companies in renewable and clean energy are particularly well-positioned to benefit.

Conclusion

With this report, CGC delivers a comprehensive and forward-looking analysis of global equity markets in Q4 2025. Founder Prof. Arend Jan Havenaar emphasizes that opportunities exist across all regions—from U.S. policy support and technology dynamics, to Europe’s economic recovery and policy stimulus, to Asia-Pacific’s emerging market growth and Japan’s accommodative policies, as well as global themes in defensive and energy sectors.

Investors are encouraged to align these insights with their risk tolerance and investment goals, allocate assets strategically, and seize these unique opportunities to achieve sustainable wealth growth.

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