Quarterly Market Overview – January 2025

Quarterly Market Overview - Q3 2024

Contributor:
Xeinadin

Date:

Share this article:

Investment market commentary

Commentary by Anne O’Doherty, Head of Life & Pensions

As we close out 2024, it’s safe to say that global markets have delivered strong performances across most major asset classes, capping off a year defined by resilience amid complexity. Despite ongoing geopolitical tensions, persistent inflationary concerns, and varying economic trends, investor sentiment has stabilized during the latter part of the year. Recession risks have largely diminished in Ireland and abroad, though market volatility remains a key feature of the investment landscape. 

Ireland: What is the current position?

The Irish economy continues to demonstrate robust growth, supported by strong exports and easing inflationary pressures. Irish CPI inflation ended the year at 2.4%, helped by moderating energy costs and targeted government interventions. However, housing remains a critical issue, with the House Price Index up 10.1% despite ECB rate cuts, reflecting continued supply constraints. Measures introduced in the 2024 Budget are expected to bring some relief, but meaningful impacts are unlikely before mid-2025.

The Irish stock market posted solid annual gains, led by the tech and pharmaceutical sectors. and there continues to be strong investor confidence in these high-growth industries. However, weaker consumer sentiment weighed on retail and service sector stocks. With government formation talks still ongoing, political developments may bring further shifts to the overall outlook.

Global Market Developments

Global equities reached new peaks in 2024, with the S&P 500 climbing 37.82%, reflecting the unexpected resilience of the U.S. economy. Strong consumer spending and a tight labour market were key drivers, though inflation remains stubbornly above target. Across Europe, where economic growth was sluggish, markets displayed more mixed results. Persistent inflation and cautious ECB policies shaped market dynamics with some sectors like industrial and export-orientated more buoyant than others.

China’s economy continued to underperform expectations, with its recovery hindered by property market struggles and weak export demand. Meanwhile, the UK, althought benefitting somewhat from the energy sector was weighed down by slower economic growth. Finally in the U.S., the Presidential Election sees a switch from the Democrats to the Republicans and Trump taking on the leadership reigns this month which could have a large bearing (in any direction!).

Looking Ahead to 2025

As we move into 2025, Central Bank policies, inflation trajectories, and geopolitical events continue to remain key market drivers. Ireland’s economic resilience and strong export sector position it well, though challenges in housing and consumer sentiment persist. It’s about getting a balance. Globally, diverging economic trends may present opportunities for those with diversified portfolios.

Despite continued uncertainty, we remain optimistic about the long-term prospects for investors. Maintaining a well-diversified portfolio and adhering to a clear investment strategy remain essential for navigating uncertain times. 

If you need expert assistance with financial planning and wealth management, please contact us at Xeinadin Financial Services.

2024 key economic indicators

Economic stats – Ireland – year to year

Irish CPI Inflation 2.4%
ECB Base Rate 3.25%
Irish Unemployment Rate 4.3%
House Price Index 10.1%

Market returns

Eurostoxx 50 20.9%
German DAX 30.25%
Euronext Dublin 14.73%
S&P 500 37.82%
FTSE 100 11.83%

Currency values (year-end)

EURO/USD€1 = $1.08
EURO/GBP€1 = £0.83 

Sources: Tradingeconomics.com / marketwatch.com

Speak to an expert

At Xeinadin Financial Services, our mission is to improve your financial well-being through personalised advice, deep expertise, and years of experience. We are committed to delivering the highest standards of quality and excellence in everything we do.

Specialising in financial planning and wealth management, we provide tailored solutions to help you reach your financial goals with confidence.

Ready to take the next step? Fill in your details below to schedule a consultation with one of our expert advisors.

This website uses cookies

With these cookies, we and third parties can collect information about you and your internet behaviour, both within and outside our website. Based on this, we and third parties adjust the website, our communication, and advertisements to your interests and profile. You can read more information in our cookie statement.

If you opt for acceptance, we will place all cookies. If you opt for rejection, we will only place functional and analytical cookies. You can adjust your preferences at a later time.

Accept Reject More options

This website uses cookies

With these cookies, we and third parties can collect information about you and your internet behaviour, both within and outside our website. Based on this, we and third parties adjust the website, our communication, and advertisements to your interests and profile. You can read more information in our cookie statement.

Functional cookies
Arrow down

Functional cookies are essential for the proper functioning of our website. They allow us to enable basic functions such as page navigation and access to secure areas. These cookies do not collect personal information and cannot be disabled.

Analytical cookies
Arrow down

Analytical cookies help us gain insight into how visitors use our website. We collect anonymised data about page interactions and navigation, enabling us to continuously improve our site.

Marketing cookies
Arrow down

Marketing cookies are used to track visitors when they visit different websites. The goal is to display relevant advertisements to the individual user. By allowing these cookies, you help us show you relevant content and offers.

Accept all Save