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Global financial markets posted mixed performance through mid-July, as the onset of earnings season brought strong results from major banks, trade and tariff negotiations advanced ahead of key August deadlines, and the economic outlook for the second half of 2025 improved amid easing recession risks. This positive sentiment was tempered by ongoing inflationary pressures. Equity markets rose overall, led by gains in Technology and small-cap exposures, although regional indices posted mixed performance. Interest rates increased, driven by robust economic data that pointed to persistent inflation, leading to a modest reduction in expectations for U.S. Federal Reserve rate cuts in the second half of the year. The U.S. dollar weakened against most major currencies. In commodities, Copper and Silver led gains, with additional gains seen in Oil, Natural Gas, and Sugar.

Hedge funds gained through mid-July, with the HFRX Global Hedge Fund Index gaining +0.07%.

• HFRX Event Driven Index gained +0.31%
  
• HFRX Equity Hedge Index gained +0.16%
• HFRX Relative Value Index declined -0.08%
• HFRX Macro Index declined -0.27%
  

Comments reference performance figures as of July 15th, 2025