New analysis launched in the present day from international monetary know-how firm IG reveals Australian merchants are demonstrating unprecedented concern about geopolitical tensions, however stay optimistic about Australian shares.

The most recent knowledge from IG’s most up-to-date A Dealer’s Place report reveals 60% of merchants cite geopolitical uncertainty as their primary concern. This concern rose sharply from 50% (December 2024) and is the very best degree recorded to this point because the survey started monitoring in 2022.

Amid continued international tensions and the impression of US tariff bulletins, IG’s June 2025 survey reveals Australian buyers are pulling again from US markets, with the proportion investing in US property dropping from 25% in Dec 2024 to simply 15% in Jun 2025. This marks the bottom degree recorded previously 18 months, presumably reflecting considerations over US market volatility.

Key Findings from A Dealer’s Place:

• Index Uncertainty: The proportion of merchants who’re uncertain which index will expertise the very best development rose sharply from 15% in Dec 2024 to 25% in Jun 2025.

• Home focus: Australian buyers proceed to favour home shares, with native portfolio allocation rising from 55% in Dec 2024 to 62% in June 2025.
  • 72% of merchants anticipate development within the ASX over the subsequent 6 months. IG Merchants’ expectations of the Australian share market have risen steadily (28 proportion factors) since June 2022

• Inflation much less regarding: Concern about inflation has declined from 56% in June 2024 to 37% in June 2025, whereas recession considerations have dropped from 55% in Dec 2023 to 39% in June 2025.

• Rise of AI: In June 2025, AI-related industries have been as soon as once more recognized as the expected sector of highest development throughout Australia (47%) reaffirming robust investor confidence within the long-term potential of synthetic intelligence throughout all core markets.

• Defence an growing curiosity: Amongst Australian buyers, the Defence and Navy sector has seen a pointy rise in curiosity – up from 27% in Dec 2024 to 42% in June 2025, reflecting rising confidence in defense-related industries as a strategic funding alternative.

• ESG Curiosity grows: The proportion of Australian merchants who contemplate ESG elements necessary of their funding choices rose to 41% in June 2025, rebounding to ranges final seen in December 2023 (42%).

Michael Jones, Managing Director at IG Australia, says geopolitical instability is influencing Australian merchants’ funding methods with the Australian market being one of many beneficiaries.

“Regardless of the uncertainty, there’s been a notable rise in curiosity and confidence within the Australian market, coinciding with a drop in curiosity within the US market. Index uncertainty rose 10 proportion factors in Jun 2025, whereas 72% of buyers anticipate development within the ASX over the subsequent 6 months, the very best optimism recorded since monitoring started,” Jones stated.

The report notes regular development in ETF buying and selling by Australian buyers, a lot so it’s changing into a core element of Australian buyers’ methods, with ETF buying and selling rising from 32% in June 2024 to 40% in June 2025.

“We additionally noticed a decline in riskier property like cryptocurrencies (down 4 factors) and foreign money buying and selling (down 6 factors) since Dec 2024. In the meantime, commodities have steadied, dropping by some extent from December 2024, suggesting a sluggish in curiosity in perceived safe-haven property,” stated Jones.

A Dealer’s Place supplies useful insights into the shifting attitudes and behaviours of buyers, serving to IG to trace consumer sentiment and higher perceive how merchants are navigating an more and more quick paced and unstable market setting.

“As Australian merchants proceed to adapt, IG Australia stays dedicated to delivering the platform buyers want to interact confidently with the market. Our new $0 Fee construction for each home and worldwide shares on an IG Share Buying and selling account with immediate conversion arrange is the right instance of this,” stated Jones.