NAIROBI, Kenya, July 13 – Standard Chartered has projected a weakening of the US greenback over the following 6 to 12 months, a growth it says may unlock new funding alternatives in rising markets, together with Africa.
In its Global Market Outlook for the second half of 2025, the financial institution highlights shifting international macroeconomic situations, with resilient consumption and monetary stimulus supporting US progress, regardless of uncertainties surrounding commerce coverage.
Europe is benefiting from fiscal easing, whereas China’s outlook is stabilising following focused financial stimulus and enhancing shopper demand. Growth in India and the ASEAN area stays robust.
The report suggests {that a} softer greenback may gain advantage rising market property, which have traditionally proven stronger efficiency beneath such situations.
The financial institution has accordingly upgraded its outlook on Asia (excluding Japan) equities and rising market local-currency bonds to ‘Overweight’.
“Emerging market traders are well-positioned to capitalise on a interval of weaker greenback dynamics and shifting international commerce flows,” mentioned Manpreet Gill, Chief Investment Officer for Africa, the Middle East, and Europe at Standard Chartered.
“Asset lessons reminiscent of EM bonds and non-US equities provide potential for revenue technology and portfolio resilience.”
The report maintains a choice for USD-denominated bonds within the 5–7-year maturity vary, citing beneficial risk-return profiles as rates of interest ease.
Meanwhile, developed market investment-grade company bonds have been downgraded to ‘Underweight’ on account of compressed yield spreads and decreased investor inflows.
The financial institution additionally flagged gold as a key allocation for traders, supported by central financial institution demand and its function as a hedge in periods of market uncertainty.
The outlook comes at a time when international traders are rebalancing portfolios in response to diverging financial coverage paths, easing inflation, and rising curiosity in different property.
For Africa, the report indicators potential alternatives for capital inflows, notably in native bond markets and listed equities.
