January 2025 – Market Overview

Below is a summary of the key financial and economic events that have impacted the markets
this week. Our goal is to provide you with timely insights to help navigate the volatility and
make informed decisions.

1.Market Recap: January 2025

The global equity markets commenced 2025 on a positive trajectory, with European stocks leading the surge. The Stoxx Europe 600, Germany’s DAX, Spain’s IBEX, and Italy’s FTSE MIB all reached record highs, reflecting renewed investor confidence in the region.

U.S market Policy Decision:
In contrast, U.S. equities experienced modest gains. The S&P 500 index increased by 2.7% in January, despite challenges such as rising bond yields and a decline in the technology sector. Historically, gains in January have often led to above-average returns for the full year, suggesting a cautiously optimistic outlook for U.S. markets.

2. Selective Investment Strategies
Emerging markets presented a mixed picture. While some regions faced economic uncertainties, others offered promising opportunities.

China Market:
China’s market has shown resilience, with significant gains in technology and electric vehicle sectors. This performance underscores the importance of selective investment strategies in emerging markets.

3.Halal Investment Opportunities
For investors adhering to Islamic principles, the current market landscape offers a variety of Shariah-compliant opportunities for equities the UK capital market provides a substantial pool of over 300 Shariah-compliant stocks, offering diverse options for ethical investment.

4.Geopolitical and Commodity Market Developments

Real Estate:
Shariah-compliant Real Estate Investment Trusts (REITs) continue to gain traction, providing tangible asset-backed investment opportunities that align with Islamic finance principles.

Gold:
Investors sought safe-haven assets amid market volatility, pushing gold prices to a one-month high per ounce.

5.Emerging Markets:

Halal Oppourtunity for halal Markets:
Regions in Africa and Asia are presenting new avenues for halal investments, particularly in sectors like:
- Renewable Energy.
- Technology.

which are both experiencing robust growth.

6.2025 Strategies: 

As the global economy navigates through 2025, investors are encouraged to conduct thorough due diligence and consider diversification strategies that align with both their financial goals and ethical values.