Investment update - June 2026
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Published on 27 July 2026Global markets in June were shaped by a shift in the perceived inflation-growth trade-off. Mid-month, reports of a potential agreement between the United States and Iran, together with progress towards reopening the Strait of Hormuz, triggered a sharp decline in oil prices, reducing downside risks to growth and easing inflation expectations. Risk appetite improved over the month, although market performance remained uneven as investors balanced the benefits of lower energy prices against an increasingly hawkish policy stance from the US Federal Reserve.
Global equities were broadly flat, but there was considerable divergence beneath the surface. US equities recorded a modest decline, with technology names under pressure as investors questioned the scale and timing of AI-related capital expenditure, Investor caution was further reinforced by the Federal Reserve's June meeting, which maintained a restrictive policy tone despite leaving interest rates unchanged.