Market Updates

At BlackRock’s Midyear Forum, senior portfolio managers emphasized uncovering investment opportunities amid market disruption, urging focus beyond short-term noise, smart risk-taking, use of AI, and awareness of bias.

Markets face a relatively quiet data week focused on US–China trade talks, inflation reports, and UK figures, while global sentiment is shaped by rising US tariffs, mixed economic signals, and China’s deepening deflation and trade struggles.

Long-term U.S. bond yields have risen sharply amid renewed concerns over debt sustainability, prompting BlackRock to remain underweight on long-term bonds, with a preference for euro area debt over U.S. Treasuries.

Markets are bracing for a busy week of global data and central bank signals—including US jobs and the ECB’s rate decision—amid ongoing trade tensions, mixed US economic signals, and rising concern over tariffs’ impact on growth and inflation.

Despite recent volatility and a Moody’s downgrade, U.S. stocks have rebounded, and BlackRock continue to view U.S. assets as core to portfolios—though heightened uncertainty limits conviction in any single long-term scenario.

Markets were buoyed by easing US-China tensions and soft US inflation data last week, though Moody’s US credit downgrade and weak retail sales unsettled sentiment; this week brings Eurozone CPI, UK inflation, and a wave of central bank commentary alongside global economic forums and key housing and PMI data.

Malcolm Schembri – Fund Manager, of EPIC Global Equity Fund reflects on how Warren Buffett’s timeless principles—focusing on quality businesses, decentralised leadership, and long-term thinking—have shaped his investment philosophy and guided both successes and mistakes throughout his career.

The U.S.-China trade deal marks a significant de-escalation, reinforces that hard economic constraints are shaping policy, and suggests limited long-term growth impact from tariffs—keeping Blackrock risk-on while selectively watching earnings.

Markets are focused this week on key economic data from the US, UK, and eurozone, while central bank signals, easing geopolitical tensions, and China’s fresh monetary stimulus shape the macro outlook amid cautious Fed messaging and ongoing trade policy uncertainty.

The U.S.-China trade conflict is disrupting the economy, but structural factors and the AI mega force keep BlackRock positive on U.S. and developed market stocks despite expected volatility.