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Market Insights

Market Insights

Citi UAE's view on the financial market and the world of wealth today and tomorrow.

Wealth Outlook 2025

Growth amid Discord: Investing in 2025 and Beyond

With Trump’s re-election in 2025, many are concerned about the potential policy and tariff changes that may impact investment portfolios. Citi believes in remaining disciplined when investing and to broaden horizons to other markets that have the potential to generate returns.

CIO Strategy Bulletin

Investment Strategy Bulletin ꟾ Mar 10th 2025 By Citi Wealth Insights

A violent day for risk assets

Following a weekend of relatively muted news flow (by 2025 standards), equity volatility as measured by the VIX spiked more than 20% today and the Nasdaq staged a greater than 3-standard deviation decline. Today's VIX move lands within the 91st percentile over the last ten years. This market action was the latest chapter in a high-octane rotation within the US equity market in 2025, where low volatility > momentum, Value > Growth, and underowned sectors (Energy) > well-loved sectors (Technology).

Latest CIO Views

Latest CIO Views

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Weekly FX Focus

Weekly FX Focus ꟾ 6th Mar 2025

FX Focus: AUDUSD – China Premium Embedded into AUD

Expectations about China’s recovery and US tariffs are undoubtedly important in driving AUD sentiment. While Australia may escape any direct tariff threat (Trump has indicated as much), due to its Free Trade Agreement and trade deficit with the US, AUD cannot fully escape the indirect impact of a hike in US tariffs on Chinese imports which may hit Australia’s commodities exports to China.

FX Perspectives | Feb 28th, 2025

FX Perspectives: Tariff Threats and Declining FX Volatility

Since the last podcast, the broad-based USD Index (DXY) has dropped almost 320 pips to 106.60. DXY's drop has come against the backdrop of sharply declining FX volatility despite the escalating threat of tariffs from President Trump. Jaideep Tiwari, our Head of Global Foreign Exchange Investment Strategy explains why markets may be paring back the Trump tariff premium, and key currencies that may be affected by tariff risks.

Global Strategy

Global Strategy ꟾ Quadrant | February 7, 2025

Keeping Our Balance Amid Upheaval

Territorial claims. Tariffs. Government makeovers. What is the new US administration really up to? While we remain optimistic U.S. growth and profits will rise in 2025 and 2026, any new approach to trade – with both allies and rivals – brings increased risk to the table. President Trump’s extreme high risk/high reward approach makes a more volatile market background likely.

Planting for tomorrow: Weaving sustainability into the path toward food security

Sustainable Investing Spotlight

Planting for tomorrow: Weaving sustainability into the path toward food security

Rising global food insecurity has come under the spotlight following a series of geopolitical shocks, including the COVID-19 pandemic and Russia’s invasion of Ukraine. Food security concerns have also been compounded by the effects of a shifting climate and increasing evidence of damage caused by accelerating biodiversity loss and water scarcity. Amid concerns about immediate and long-term food security, agriculture policies are caught in the crossfire between short-term food security and sustainability.

Middle East Strategy

Middle East Strategy ꟾ Feb 2025

Middle East Strategy: The Road Ahead: GCC Strategy for 2025

The Outlook for the Gulf Cooperation Council (GCC) remains constructive, although short-term volatility could persist as the global economy adjusts to the implications of a second Trump presidency. Donald Trump’s return to the White House brings fresh uncertainties to global trade and energy markets.

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