Global Markets at a Turning Point 

Global markets experienced greater volatility in July as investors reassessed some of the optimism that had driven technology and artificial intelligence-related shares earlier in the year. Although corporate earnings remained broadly supportive, elevated valuations, persistent inflation, geopolitical tensions, and cautious central banks created a more selective investment environment. 

Many markets recovered towards month-end, but performance varied significantly across regions and sectors. Against this backdrop, our portfolio positioning remains balanced. We retain benchmark exposure to global equities while maintaining our allocation to commodities, reflecting their diversification benefits and potential to protect portfolios against inflation and geopolitical shocks. 

A More Selective Market Environment 

The global economy remains resilient, but the investment environment has become increasingly nuanced. Inflation has moderated across many developed economies, yet it remains above central bank targets and vulnerable to renewed pressure from energy markets, supply-chain disruptions, and geopolitical uncertainty. 

Economic growth has also softened. The US economy continues to expand, albeit at a slower pace, while China faces weaker domestic demand and slowing activity. Financial markets, therefore, remain sensitive to inflation data, central bank decisions, and changes in interest-rate expectations. 

In this environment, disciplined asset allocation and selective risk-taking are increasingly important.