Global markets delivered mixed returns for June. Following the strong gains in May, US equities experienced a modest pullback, with the Nasdaq and S&P 500 falling by 2.7% and 1.0%, respectively. European equities outperformed during the month, supported by easing geopolitical tensions in the Middle East. This contributed to lower oil prices which eased inflation concerns and improved investor sentiment towards more economically sensitive sectors. The Euro STOXX 50 rose 4.7% while the FTSE 100 gained 1.0%, lagging due to its larger exposure to energy and mining stocks. Fixed income markets produced varied results as investors weighed softer economic data against ongoing central bank caution regarding inflation. In the UK, government bonds performed strongly, with the 10-year gilt yield falling by 5.5 basis points. In contrast, the 10-year US Treasury yield increased by 3 basis points. In commodities, energy prices declined sharply. Brent crude oil fell by 17.9% following reports of a diplomatic agreement between the US and Iran helping to ease supply concerns. In currency markets, sterling depreciated against both the US dollar and the euro, declining by 1.4% and 2.0%, respectively.

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