May 2026 - Market review
UK Defensive tilt tempers gains: the UK navigated a landscape of shifting sentiment during April as geopolitical unrest and domestic inflation weighed on the outlook. Although the FTSE 100 Index closed the month higher, its defensive bias and exposure to energy stocks meant it lagged broader international markets. Over April, the FTSE 100 Index rose by 2% while the FTSE 250 Index climbed by 5.9%. Inflationary pressures intensify: the UK’s rate of inflation rose from 3% to 3.3
Market reaction to the Iran ceasefire: what it means for investors
The announcement of a 14-day ceasefire involving Iran has been welcomed by global financial markets, with equities seeing a short-term uplift. While geopolitical developments are always uncertain, it’s helpful to understand why markets have reacted positively—and what could come next. Why markets have risen In the immediate aftermath of the ceasefire announcement, global stock markets have moved higher. This reflects a reduction in geopolitical risk. Periods of conflict—parti
Developments in Iran - Follow up
Following our recent update on developments in Iran, we wanted to provide a brief update on how markets have reacted over the past few days and what this may mean for investors. The key message remains unchanged: there is no need for investors to panic. However, recent developments in energy markets and political commentary have influenced short-term market movements. Oil prices and market volatility As expected, the main economic channel through which the conflict has