The investment team at atomos believes the strength in global equites, while perhaps surprising in the face of these geopolitical and macroeconomic uncertainties, is understandable for two main reasons: the forward‑looking nature of markets, which balance near‑term risks against the broader longer-term backdrop, and the relative strength that’s been demonstrated by recent corporate earnings results.

In contrast to stock markets, government bond markets have remained somewhat more sensitive to these global developments through May, with notable differences across regions.

In the UK, bond yields rose earlier in the month before easing back, leaving bonds delivering positive returns overall, despite some volatility driven by domestic political developments. While political uncertainty can create short‑term market movements, this has historically tended to be temporary unless it results in a clear and lasting shift in economic or fiscal policy. At this stage, there is no strong evidence to suggest such a shift is the most likely outcome, in the view of the investment team.

Looking back to the start of the year, UK bonds had been performing well, supported by improving inflation dynamics and expectations of interest rate cuts. It is important to remain focused on these underlying fundamentals rather than short‑term noise. As a result, the investment team remains constructive on UK bonds, believing that UK bond performance is likely to remain supported as conditions stabilise.

In contrast to the UK, US bond yields moved higher (and bond prices lower) on stronger growth and higher inflation expectations, with the market somewhat playing catch-up with the larger increases in bond yields experienced in Europe over March and April. US bond yields eased again towards the end of the month as energy prices declined, in conjunction with developments in the middle east conflict.

This divergence in economic conditions and policy expectations across the UK, US and Europe reinforces the importance of focusing on underlying fundamentals – while avoiding getting caught up in the noise.

Andritz is a pioneering Austrian industrials company offering a broad range of innovative plants, equipment, systems, and services across diverse industries. A global market leader across all four of its business areas – Pulp & Paper, Metals, Hydropower, and Environment & Energy – the company is well-positioned at the intersection of industry and sustainability.

With operations spanning more than 280 locations across 80 countries, Andritz benefits from a truly global footprint and a growing services business that now accounts for just under half of group revenue, providing a more resilient and recurring revenue base.

Structural growth trends driven by the green energy transition and the shift toward more sustainable industrial practices have provided a meaningful tailwind for Andritz. This momentum is reflected in a record order intake of €3.6 billion in the most recent quarter, pushing its order backlog to unprecedented highs. Encouragingly, the company has demonstrated strong operational discipline through this period of growth, with margins holding steady – supported by improved project execution and disciplined cost management. The Hydropower segment is perhaps the clearest illustration of this dynamic, where sustained demand for renewable energy, grid stability, and energy storage solutions has translated into strong and accelerating growth.  

Source: atomos.

Information correct as of 5th June 2026. 

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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