It’s been a quietly positive few months in global markets, which in the investing world is often a welcome sign. Even with ongoing global economic uncertainty, markets have made steady progress and held up better than many expected.

In this update, we’ll unpack what’s behind that momentum and explain what it all means for you and your portfolio with us.

🇺🇸 U.S. markets: Tech leads the way

Over the last three months, US stocks have held up well, even with mixed signals about how the economy’s doing. Technology companies (especially those connected to artificial intelligence) have been standout performers. Some economic reports still show solid growth, but others hint things could slow down in the months ahead.

With that in mind, there’s growing talk that the Federal Reserve (the independent US central bank) could cut interest rates soon. This is a move that usually gives markets a boost. 

🇬🇧🇪🇺 Europe and the UK: Quietly bouncing back

Markets in Europe and the UK have had one of their best runs in years. Business confidence is picking up, and after a long stretch of caution, investors are putting more money into the region. London’s main stock index hit a record high and broader European markets followed. It’s a good sign that the region is on firmer economic footing than where things were a year ago.

🌍 Tariffs and trade: Still in focus

Trade tensions haven’t gone away, and new tariffs have continued to make headlines, but markets have mostly taken them in their stride.

Talks between the US and Europe have helped calm some concerns,  though industries like metals and manufacturing are still feeling the pinch. The US dollar has been stronger too, which often shows global investors still see the US as a safe bet.

📈 What this all means for you

Overall, markets have been calmer than the news might make you think, which has quietly helped many portfolios to grow.

As always, the best strategy is to maintain a long-term focus by embracing diversification, patience, and quality investments.

As with all investing, your capital is at risk. If you choose to invest with Octopus Money, the value of your investments can go down as well as up and you may get back less than you invest.