Q226 reflections: Leadership swings back – the value case holds

We’re pleased to share our Q226 reflections report, produced in collaboration with OTC Markets Group, examining how the Iran ceasefire, falling oil prices and renewed enthusiasm for AI and semiconductors shifted market leadership back towards the US and growth stocks.

Key highlights:

• US leadership returns: The S&P 500 regained the lead as AI and semiconductor stocks rebounded.
• Energy reverses: Oil’s post-ceasefire decline left energy and utilities among the weakest sectors.
• Central banks diverge: The ECB raised rates, the Fed turned more hawkish and the BoE maintained a cautious stance.
• UK fiscal concerns: Gilt volatility reflected renewed concerns over fiscal credibility and inflation.
• Diversification case endures: Attractive UK and European valuations, increased M&A and strong international OTC flows continue to support the longer-term case.

The report includes charts and analysis of inflation, interest rates, manufacturing activity, currencies, bond yields, market and sector performance, UK M&A trends, and OTC Markets trading volumes, regional flows and market composition.

Produced in collaboration with OTC Markets Group, this report combines Edison’s equity market expertise with comprehensive OTC Markets trading analytics to provide investors with actionable insights into the European diversification opportunity.

About this report

Reflections is a quarterly review of UK and European markets produced by Edison Group in collaboration with OTC Markets Group, combining fundamental analysis with market data to help investors navigate international equity opportunities.

To read the full report, click the download button at the top of the page.