June 2026
Monthly Market Update
Overview
Outlook: As 2026 progresses, the global growth outlook has remained resilient, prompting central banks such as the Federal Reserve and European Central Bank to maintain a cautious policy stance amid persistent inflationary and geopolitical risks. We continue to favour equities, particularly high-quality, cash-generative large caps with resilient earnings, whilst maintaining fixed income as a core portfolio anchor given still-attractive yields and diversification benefits. Opportunities are also emerging in emerging markets and smaller-cap equities, where valuations remain compelling relative to developed market peers. However, geopolitical risks remain a key swing factor for markets, particularly developments involving Iran, tensions impacting global energy supply routes such as the Strait of Hormuz, and broader US-China dynamics, all of which could drive volatility in oil prices, inflation expectations and risk sentiment. Overall, the outlook for the remainder of 2026 remains cautiously constructive, supported by strong earnings and resilient fundamentals, but with heightened sensitivity to geopolitical developments.
Developed Markets
North America
Last week, U.S. equity markets delivered positive returns, supported by easing geopolitical tensions after reports of a U.S.–Iran agreement that could help reopen the Strait of Hormuz and reduce pressure on oil prices. The Nasdaq led gains among major indexes, while the S&P 500 and Russell 2000 also advanced. Investor sentiment was tempered mid-week after the Federal Reserve kept interest rates unchanged but adopted a more hawkish tone, with policymakers signalling the possibility of future rate hikes and raising inflation forecasts. Economic data remained broadly supportive, as retail sales exceeded expectations, highlighting resilient consumer spending, although housing activity continued to face headwinds from elevated mortgage rates and affordability challenges. In fixed income markets, short-term Treasury yields rose as investors adjusted to the Fed’s outlook, leading to weaker bond performance, while high-yield bonds outperformed amid improved risk sentiment.
Europe & UK
Last week, European markets moved higher as investor sentiment improved following reports of a U.S.–Iran agreement that could help ease geopolitical tensions and reduce pressure on global energy markets. Major continental indexes posted solid gains, led by Italy, Germany, and France, while the UK market declined slightly. Economic data across the region was mixed, with the eurozone unexpectedly recording a small trade deficit due to higher energy imports and weaker machinery exports. In Germany, wholesale inflation eased and business confidence improved, reflecting growing optimism about the economic outlook. Central banks largely remained on hold, with the Bank of England keeping interest rates unchanged as inflation stayed relatively stable, while the Swiss National Bank and Norway’s central bank also left rates unchanged, though Norway signalled that further tightening may still be needed due to persistent inflation pressures.
Japan
Last week, Japanese equities posted strong gains, with the Nikkei 225 reaching new record highs, driven by continued investor enthusiasm for technology and semiconductor companies benefiting from global artificial intelligence investment trends. Market sentiment was further supported by easing geopolitical concerns following the U.S.–Iran agreement, which could help restore normal shipping activity through the Strait of Hormuz—a critical route for Japan’s energy imports. On the policy front, the Bank of Japan raised its short-term interest rate to 1.0%, the highest level since 1995, and continued reducing its bond purchases as part of its gradual shift away from ultra-loose monetary policy. The central bank also signalled that further rate increases may be needed if inflation remains elevated. Meanwhile, the yen weakened against the U.S. dollar, increasing speculation of potential government intervention to support the currency. Economic data remained encouraging, with exports growing strongly and core machinery orders rebounding sharply, highlighting resilience in both domestic and external demand.
Emerging Markets
China
Last week, Chinese equity markets delivered mixed performance, with mainland stocks advancing while Hong Kong-listed shares declined. Investor sentiment was supported by easing geopolitical tensions and lower oil prices following reports of a U.S.–Iran agreement, although concerns about China’s domestic economy remained. Economic data highlighted an uneven recovery, with industrial production and exports showing resilience, while retail sales unexpectedly declined and fixed asset investment remained weak, reflecting subdued consumer spending and business confidence. The property sector continued to face significant challenges, with falling investment and declining home prices across much of the country, although top-tier cities showed some signs of stabilization. Meanwhile, the People’s Bank of China announced several financial market initiatives aimed at improving liquidity, strengthening financial infrastructure, and promoting the international use of the renminbi. However, the measures stopped short of a large-scale stimulus package, signalling that policymakers remain focused on targeted support and financial market development rather than aggressive monetary easing.
India
Last week, Indian equities posted strong gains, with both large-cap and mid-cap indices advancing as investor sentiment improved following a sharp decline in crude oil prices after the announcement of a U.S.–Iran interim peace agreement. Lower energy prices are viewed positively for India, helping reduce inflationary pressures and supporting economic growth. Market performance was underpinned by strong domestic liquidity and continued retail SIP inflows, which offset foreign investor selling. Volatility declined significantly during the week, reflecting increased investor confidence. Sector-wise, consumer-focused, real estate, capital goods, and infrastructure stocks led the rally, benefiting from expectations of lower input costs and stronger domestic demand. In contrast, the IT sector underperformed sharply, with major technology companies facing significant selling pressure and emerging as the primary drag on the market despite the broader positive momentum.
MENA
Last week, MENA equity markets delivered a mixed performance as investors reacted to easing geopolitical tensions and a sharp decline in oil prices following the U.S.–Iran agreement and the temporary easing of sanctions on Iranian oil exports. Lower oil prices, supported by the reopening of the Strait of Hormuz and expectations of increased regional crude supply, weighed on energy-related sentiment across Gulf markets. UAE equities were slightly weaker, with both Abu Dhabi and Dubai indices ending the week in negative territory as investors reassessed the implications of lower oil revenues for the region. However, broader market sentiment remained relatively stable, supported by improving geopolitical conditions, reduced inflation concerns, and expectations that lower energy prices could benefit non-oil sectors and consumer activity across the Gulf. Investors will continue to monitor developments in U.S.–Iran relations, oil market dynamics, and regional economic growth prospects in the coming weeks.
Commodities and Forex
Commodities
Last week, commodity markets were dominated by a sharp decline in energy prices as easing geopolitical tensions in the Middle East improved the outlook for global oil supply. Brent crude recorded a significant weekly loss, falling toward the mid-$70s per barrel after the U.S. and Iran moved closer to a peace agreement, reopening the Strait of Hormuz and paving the way for increased Iranian oil exports. The return of previously disrupted supply from the Gulf, along with expectations of higher production from major Middle Eastern exporters, created downward pressure on crude prices and widened discounts in physical oil markets. Meanwhile, lower energy prices helped ease inflation concerns globally, providing support to precious metals such as gold, which benefited from reduced inflation expectations and a softer outlook for future interest rate hikes. Overall, commodities reflected a shift from geopolitical risk premiums toward concerns about abundant supply and slower global demand growth.
Currencies
Last week, currency markets were driven primarily by shifting interest rate expectations and developments surrounding the U.S.–Iran peace agreement. The U.S. dollar strengthened broadly and recorded its strongest weekly performance in about a month as investors responded to the Federal Reserve’s more hawkish stance and growing expectations of additional rate hikes. The Japanese yen remained under significant pressure, trading near multi-decade lows against the dollar despite the Bank of Japan’s recent rate increase, prompting renewed speculation about possible government intervention to support the currency. Meanwhile, the euro and British pound were relatively stable but faced headwinds from the stronger dollar and softer economic momentum in Europe. Overall, currency markets reflected a combination of higher U.S. interest rate expectations, safe-haven demand for the dollar, and persistent weakness in currencies where central banks remain comparatively less aggressive in tightening monetary policy.
Commodities
| Name | 22/06/26 | 31/05/26 | 31/03/26 | 31/12/24 |
|---|---|---|---|---|
| WTI Oil ($/barrel) | $76.60 | $87.36 | $101.38 | $71.72 |
| Brent Oil ($/barrel) | $80.57 | $92.05 | $118.35 | $74.64 |
| Gold ($/oz) | $4155.71 | $4540.26 | $4668.06 | $2624.50 |
| Natural Gas ($/mmBtu) | $3.23 | $3.29 | $2.88 | $3.63 |
Currencies
| Name | 18/06/26 | 31/05/26 | 31/03/26 | 31/12/24 |
|---|---|---|---|---|
| Euro (€/$) | 1.1471 | 1.1659 | 1.1553 | 1.0354 |
| Pound (£/$) | 1.3232 | 1.3456 | 1.3227 | 1.2516 |
| Japanese Yen (¥/$) | 161.30 | 159.27 | 158.72 | 157.20 |
| Swiss Franc (CHF/€) | 0.9255 | 0.9105 | 0.9237 | 0.9401 |
| Chinese Yuan Renminbi (CNY/$) | 6.7682 | 6.7663 | 6.8944 | 7.2993 |
Index Valuations
Index Return
| Name | 1 Week (%) | Month-to-Date (%) | Quarter-to-Date (%) | Year-to-Date (%) |
|---|
Nexus Blend Funds
| (22/06/26) | 1 Week (%) | 1 Month (%) | 6 Months (%) | Year-to-Date (%) | 1 Year (%) | 2 Years (%) |
|---|---|---|---|---|---|---|
| US Dollar High Risk Blend | 0.56% | 0.47% | 4.86% | 4.05% | 17.45% | 29.62% |
| US Dollar Medium-High Risk Blend | 0.41% | -0.44% | 3.02% | 2.30% | 15.43% | 27.33% |
| US Dollar Medium Risk Blend | 0.40% | -0.82% | 1.95% | 1.29% | 13.29% | 24.06% |
| US Dollar Medium-Low Risk Blend | 0.34% | -0.81% | 1.21% | 0.66% | 11.05% | 20.49% |
| US Dollar Low Risk Blend | 0.36% | -0.63% | 0.84% | 0.32% | 9.65% | 17.52% |
Blend Fund Performance (Year-to-Date)
Direct Fund Name
| (22/06/26) | 1 Week (%) | 1 Month (%) | 6 Months (%) | Year-to-Date (%) | 1 Year (%) | 2 Years (%) |
|---|---|---|---|---|---|---|
| Aditum Global Discovery | 2.70% | -0.47% | 4.10% | 2.30% | 18.38% | 29.00% |
| Aditum India Explorer Fund | 2.61% | 1.63% | -8.90% | -8.08% | -6.76% | - |
| Ashoka WhiteOak India Opportunities | 0.80% | 3.49% | -7.05% | -6.26% | -7.50% | -5.75% |
| BlackRock GF World Healthscience USD | -1.35% | -1.01% | -4.02% | -4.56% | 10.34% | -0.17% |
| Emirates Global Sukuk | 0.61% | 1.23% | 0.10% | -0.11% | 4.09% | 8.59% |
| Emirates MENA Fixed Income | 1.06% | 1.81% | -0.83% | -1.00% | 6.03% | 9.16% |
| Emirates MENA Top Companies | 3.88% | 4.11% | 5.03% | 4.05% | 9.93% | 12.38% |
| Franklin Gold and Precious Metals USD | -10.68% | -9.05% | -10.59% | -7.06% | 62.64% | 179.53% |
| Harris Associates Global Equity | -2.19% | -1.33% | -1.73% | -1.56% | 8.44% | 17.72% |
| Loomis Sayles Global Growth Equity | 0.70% | -0.12% | -6.69% | -6.40% | 0.94% | 21.70% |
| Loomis Sayles US Growth Equity | -3.40% | -5.15% | -7.64% | -6.78% | 4.31% | 20.63% |
| PineBridge Japan Small Cap Equity | -1.19% | -3.98% | 17.85% | 17.43% | 25.94% | 41.09% |
| UBAM 30 Global Leaders Equity | 1.41% | -0.96% | 2.99% | 1.64% | 8.09% | 10.67% |
| iShares US Corporate bond Index | -0.27% | 0.71% | 0.77% | 0.41% | 5.27% | 10.39% |
| iShares Developed World Index | -0.83% | 0.52% | 9.30% | 8.90% | 25.69% | 40.92% |
Nexus Blend Funds
| (22/06/26) | 1 Week (%) | 1 Month (%) | 6 Months (%) | Year-to-Date (%) | 1 Year (%) | 2 Years (%) |
|---|---|---|---|---|---|---|
| US Dollar High Risk Blend | 0.56% | 0.47% | 4.86% | 4.05% | 17.45% | 29.62% |
| US Dollar Medium-High Risk Blend | 0.41% | -0.44% | 3.02% | 2.30% | 15.43% | 27.33% |
| US Dollar Medium Risk Blend | 0.40% | -0.82% | 1.95% | 1.29% | 13.29% | 24.06% |
| US Dollar Medium-Low Risk Blend | 0.34% | -0.81% | 1.21% | 0.66% | 11.05% | 20.49% |
| US Dollar Low Risk Blend | 0.36% | -0.63% | 0.84% | 0.32% | 9.65% | 17.52% |
Zurich Mirror Funds
| (22/06/26) | 1 Week (%) | 1 Month (%) | 6 Months (%) | Year-to-Date(%) | 1 Year (%) | 2 Years (%) |
|---|---|---|---|---|---|---|
| Canaccord Genuity Balanced | -0.75% | 1.02% | 5.73% | 5.11% | 13.33% | 18.02% |
| Canaccord Genuity Growth | -0.79% | 1.39% | 6.77% | 6.08% | 16.54% | 21.12% |
| Canaccord Genuity Opportunity | -0.54% | 1.92% | 9.94% | 9.32% | 21.64% | 29.53% |
| Emirates Emerging Market Debt | 0.54% | 2.67% | 2.66% | 2.60% | 8.14% | 13.95% |
| Emirates Islamic Global Balanced | 1.72% | 1.27% | 5.77% | 4.51% | 14.91% | 18.99% |
* Data is lagged by 1 day.
** Data is lagged by 2 days.