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.

Global markets delivered positive returns in June, as continued enthusiasm around artificial intelligence and semiconductor stocks outweighed concerns over rising inflation and restrictive monetary policy. Technology-led gains supported equity markets, while healthcare and biotechnology also performed strongly. However, bond performance dampened overall returns, with the Balanced portfolio benchmark gaining 0.43%. Central banks took differing approaches during the month.

Global markets stumbled in March amid rising inflation expectations and renewed trade tensions. The Balanced portfolio returned -2.09% as U.S. tariffs sparked fears of a trade war, prompting caution among investors. While Europe cut interest rates and inflation cooled slightly in the UK, pressure remains on central banks. Equity markets were volatile, with tech and key Asian markets underperforming, while some financial sectors showed resilience.

Markets trended sideways in February amid rising inflation and geopolitical uncertainty. The Balanced portfolio returned -0.37% as UK and EU rate cuts contrasted with the US Fed’s cautious stance. Inflation rose across regions, with UK CPI hitting 3.00% and the ECB reassuring that disinflation remains on track. While developed and emerging markets showed mixed performance, China led gains. Volatility persists, but history suggests potential progress as the year unfolds.