June Market Commentary

June Market Commentary by Levendi Investment Management, advisers to the Thornbridge Global Opportunities Fund

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June saw the conflict between Middle East archenemies Iran and Israel reach new levels of tension, with the US joining in on the bombing. Markets reacted positively however once signs of swift de-escalation appeared, also buoyed by a limited but productive trade deal between the US and China earlier in the month, and extension of deadlines. The US markets closed the month 4.96% up, marking a sharp recovery from earlier in the year.

The FED left rates unchanged, and continued to hint at the uncertainty that Trump’s tariffs are causing in forecasting inflation and the necessary monetary policy. In the UK, the Bank of England is in a roughly similar bind, with a stubborn inflation but some weakness in GDP and job figures.

A paralyzed year old Labour government, unable to push and increasingly often u-turning on key policies is likely to make a shaky situation worse. Much like in 2020-21 and the ensuing inflation issue, the BoE is likely to prefer putting purchasing power on the chopping block before putting jobs at risk. As such, a rate cut is likely in the coming month.

The UK markets dropped -0.13% for the month. In Europe, after an aggressive cutting cycle, the ECB indicated that the easing is almost at and end. The European markets dropped 1.18% for the month, after a stellar performance at the start of the year.

– Levendi