Month: June 2026
Market Update: Markets heading for holidays…
Stock markets, predictably, wobbled last week. Investors have seen great returns this quarter despite intense global risks, so now many institutional investment managers must rebalance their asset weightings back to target – by selling the assets that have done well. Rebalancing selling pressures are temporary, but the extent of this sell-off suggests that markets might be less fun in the second half of the year. Drier liquidity conditions and market jitters could mean stable but slightly less spectacular returns ahead.
Market Update: Markets firm but fair
The deal between US and Iran, which extends the ceasefire and opens the Strait of Hormuz, was unequivocally good news for markets. Oil prices are sharply down, global stocks are up and long-term bond yields have calmed.
Market Update: IPOmania triggers market self-doubt
Equities started last week poorly but ended strong – a reversal of the week before. Trading liquidity was initially tight as investors contemplated a glut of newly issued shares, most notably today’s SpaceX IPO, but liquidity returned on Friday amid good news stories. Recent volatility has largely been in tech sectors. That is why UK and European markets were steady compared to the tech-heavy US, despite the European Central Bank (ECB) raising interest rates.
Pensions and Inheritance Tax: Big changes coming in 2027
For decades, UK savers have relied on pensions not only for retirement income but also as a highly tax-efficient way to pass on wealth. Under current rules, pension pots generally fall outside your estate for Inheritance Tax (IHT) purposes. However, a significant change is on the horizon. From 6 April 2027, the government will remove its long-standing exemption, bringing unspent pension wealth within the scope on IHT.
Market Update: Waning momentum – growing concerns
Until Friday lunch time, it was a fairly dull week for markets. News of an Israel-Hezbollah ceasefire eased concerns but did not materially change the Middle East stalemate. As at Friday afternoon though, traders were digesting a stronger than expected US employment report. May’s surprising bounce in job creation suggests a stronger US economy than might have been expected, given higher fuel prices.
Market Update: Calmer markets?
Global stocks pushed higher last week, led yet again by global tech stocks. Semiconductor chip makers were especially strong. On Thursday, Axios reported that US and Iranian officials had agreed a 60-day ceasefire extension, during which they would negotiate a resolution to Iran’s nuclear program. The ongoing talks have calmed nerves and substantially lowered oil prices – to below $90pb at the time of writing, down from $110pb at the start of last week.