News & Views

July saw market leadership broaden beyond technology, with UK equities, commodity-linked markets and selected emerging markets delivering strong returns. However, renewed energy-driven inflation pressures kept central banks cautious, while a sharp correction in semiconductor and AI-related stocks weighed on technology-focused markets. Against this mixed backdrop, the Balanced portfolio benchmark returned -0.45% during the month.

Markets moved higher over the week as investor sentiment improved across both UK and US equities. Gains were supported by renewed appetite for risk assets, although investors continued to monitor inflation pressures, higher energy prices and ongoing geopolitical tensions in the Middle East. The week also highlighted the growing economic importance of climate-related disruption, with the UK heatwave adding pressure on infrastructure, public services and household costs.

Global markets moved higher in April as improving sentiment around the Middle East and continued strength in technology and semiconductor sectors supported equity returns. However, inflation reaccelerated across major economies due to rising energy prices, prompting central banks to maintain a cautious “higher for longer” stance on interest rates. While growth-oriented equity markets performed strongly, bond markets came under pressure as rising yields weighed on fixed income