August saw a recovery in equity markets, as investors returned to the technology sector that had driven July’s sell-off and early hopes of a deal to reopen the Strait of Hormuz eased the pressure on oil prices. Global equities returned 2.0% for the month, more than recovering July’s 1.6% fall, while global bonds returned -0.3%, a second consecutive monthly decline, constrained by persistent inflation and expectations that interest rates may remain higher for longer.
Redemption pressure, weaker borrower finances and greater regulatory scrutiny have put private credit in the spotlight in 2026. ebi does not invest directly in private-credit funds, but public markets are not sealed off from the risks they bring. Here is how those risks could travel – and why the appropriate response is portfolio discipline, not prediction.
Global equity markets gave up ground in July, returning -1.6% after gains of 5.8% in May and 0.8% in June. Global bonds fell 1.9%, having returned 1.2% and 0.8% over the same two months, making July the first month since March in which both major asset classes declined together. Two forces pulled in the same direction: an abrupt unwinding of the artificial intelligence trade, which weighed heavily on technology and semiconductor stocks, and the collapse of the US–Iran ceasefire, which pushed Brent crude above $95 a barrel and drove UK borrowing costs above 5% for the first time since May.
Our latest market commentary covers the drivers of market conditions across Q2, along with factor and asset class.
Global equity markets had a disappointing June following two relatively strong prior months. Market weakness in the first half of the month was followed by a recovery after the US and Iran reached a memorandum of understanding to extend an existing ceasefire, and finished the month 0.78% higher. Despite this slowdown in performance relative to the previous months, equities still had a standout second quarter, rising 14% overall. June also saw bonds outperform equities for the first time since March, climbing 0.84% as fixed income products were buoyed by the expectation of lower inflation and lower interest rates ahead.
Diversification is a powerful tool, perhaps the most powerful one in investing. Decades of experience has shown that broad exposure through index trackers offer a low cost, transparent discipline that’s hard to beat. And it is a core principle underlying ebi’s approach to investing across our portfolio suites, from the pure market-weighted Core range to the factor aware Earth range.
The company’s shares took off after listing, then came back down sharply as investors reassessed the price. It saw multiple days with percentage-point price swings in the double digits. That is not unusual. Newly listed companies often spend their first weeks and months finding a level. Some rally well beyond the offer price. Others fall back once the initial excitement fades. Many do both.
The current wave of mega-IPOs is reviving a familiar concern about passive and rules-based investing: that broadly diversified portfolios would be forced to buy fashionable new stocks in vast quantities just as excitement peaks. The reality is more disciplined and more interesting than that.
Global equities continued their April rally into May following March’s 5.6% drawdown initiated by the outbreak of conflict in the Middle East. The equity rally was driven in part by the market’s optimism of a potential diplomatic resolution between the US and Iran, but it drew a stark contrast with the reality of ever-deepening supply shortages in the global oil markets, particularly across Asia.
April saw a strong rebound from March’s sharp sell-off, as easing tensions in the Middle East and resilient corporate earnings helped restore confidence across global equity markets. Global equities returned 6.9% for the month, more than recouping March’s losses, while global bonds returned -1.7% as bond yields continued to rise on inflation concerns.
