This has helped ease concerns around the conflict’s impact on both inflation and global growth, which has been well received by markets; government bond yields (which move inversely to prices) initially moved lower as inflation concerns eased, equity markets strengthened, while sectors and regions most exposed to higher energy costs benefitted from the improvement in sentiment.

While the US/Iran ceasefire helped markets to recover from a mild downturn in the early part of the month, June saw a small decline in US and Asian equity markets overall (largely tied to artificial intelligence (“AI”) themes), while Europe and the UK delivered modestly positive monthly performance, as the ceasefire news was seen as a stronger tailwind for these regions. While global performance was mixed over the month, the investment team at atomos notes this should be put in the context of an exceptionally strong quarter and year-to-date performance for global equity investors.

Over the second quarter of 2026, equity markets continued to deliver strong performance, although returns varied across different regions. The US, Emerging Markets and Asia Pacific regions performed best, helped by the continued success of companies benefitting from the growing demand for AI.

While overall market performance was materially positive in Q2, the investment team notes this has coincided with periods of increased volatility in individual stocks, sectors, and themes. Investor enthusiasm remained concentrated in AI-related companies, leading to stronger gains in those businesses while some other sectors lagged. This reflects a common feature of markets when a particular theme captures investors’ attention.

When companies are growing very quickly – as we are seeing with many AI-related businesses – their share prices are often more volatile. This is because investors expect these companies to earn much more money in the future than they do today.

As a result, a large part of their value is based on what investors believe they will achieve over the years ahead. If expectations about the economy, interest rates or the company’s future growth change, even slightly, their share prices can move quite sharply. By comparison, companies that are expected to grow at a steadier pace tend to be less affected by changes in these expectations, so their share prices are often less volatile.

In recent weeks, some of these technology shares have weakened as investors have been reassessing companies’ valuations and how quickly they will benefit from AI-related investment. Despite this reassessment, businesses are still expected to deliver strong profits, and investment in the technology behind AI remains substantial.  While periods of volatility are likely to persist, the investment team at atomos continues to view developments in artificial intelligence as a potentially significant long-term driver of productivity and economic growth.

History suggests that major technological transitions are rarely a straight line for markets, but investors who remain focused on longer-term prospects rather than short-term share price movements have often been best placed to benefit from the opportunities they create.

Elsewhere, central banks continued to respond to differing economic conditions across regions:

• The Bank of England left rates unchanged, holding Bank Rate at 3.75% by a 7-2 vote, with two members voting to raise rates to 4%. The Bank continues to balance weak growth against the risk that higher energy prices could feed into broader inflation expectations and wage-setting.

• There were also significant political developments during the month, with Prime Minister Starmer announcing his resignation, and newly elected Makerfield MP Andy Burnham, emerging as the favourite to replace him. Thus far, financial markets have reacted relatively calmly, aided by statements from Burnham committing to existing fiscal rules, helping (along with the ceasefire news) UK bonds to deliver positive performance for the month. While there may be a period of heightened volatility given Gilt and Sterling markets sensitivity to fiscal credibility, the investment team at atomos ultimately doesn’t expect political and policy developments to exert sustained negative impact on UK bonds.

• The European Central Bank raised key interest rates during June by 25 basis points citing continued inflation pressures. At the same time, policymakers acknowledged a relatively modest growth outlook, highlighting the balancing act facing European policymakers.

In Japan, the Bank of Japan raised interest rates to their highest level in 30 years, continuing its gradual move away from the ultra-low borrowing costs that have shaped the country’s economy for decades.

The Magnum Ice Cream Company is the world’s largest dedicated ice cream business, with a portfolio of iconic brands including Magnum, Ben & Jerry’s, Cornetto and Wall’s. Following its separation from Unilever in late 2025, the company now operates as an independent business with a clear focus on growing its leading global brands, improving operational efficiency and investing in innovation. Its scale, premium brand portfolio and first-class global distribution network provides a strong footing across both developed and emerging markets – particularly as we head into its peak trading season throughout the summer across its largest geographies.

While the business remains seasonal, Magnum’s global footprint helps offset weather-related fluctuations across regions, while rising ice cream consumption in emerging markets provides a meaningful long-term growth opportunity. Continued product innovation and a growing consumer preference for premium indulgence products also support the company’s ability to drive higher-value sales and strengthen margins over time.

During June, Magnum shares performed strongly, rising more than 10% as investors grew increasingly confident ahead of the company’s first peak summer trading season as an independent business. Management reiterated its confidence in delivering medium-term organic sales growth of 3–5%, underpinned by the strength of its brands and continued operational improvements.

Source: atomos.

Information correct as of 2nd July 2026 and does not account for subsequent developments in the Middle East. 

FOR PROFESSIONAL INVESTORS ONLY.

atomos is the trading name of both Atomos Investments Limited (FCA No: 122588, Company No: 2041819) and Atomos Financial Planning Limited (FCA No: 193503, Company No: 3879955), both authorised and regulated by the Financial Conduct Authority and registered in England and Wales. Registered offices: 2nd floor, 5 Hatfields (alto), London, SE1 9PG.

The information and opinion contained in this article should not be treated as a forecast, research or advice to buy or sell any particular investment or to adopt any investment strategy. Any views expressed are based on information received from a variety of sources which we believe to be reliable, but are not guaranteed as to accuracy or completeness by atomos. Any expressions of opinion are subject to change without notice. Past performance is not a reliable indicator of future results. Investing involves risk and the value of investments, and the income from them, may fall as well as rise and is not guaranteed. Investors may not get back the original amount invested.

The companies mentioned are shown for illustrative purposes only, do not constitute investment advice, and are not a recommendation to buy or sell any security.

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