Q326 reflections: The price of money has changed – the value case holds

We’re pleased to share our Q326 reflections report, produced in collaboration with OTC Markets Group, examining how rising bond yields, renewed monetary tightening and shifting equity valuations are reshaping global markets, while international OTC trading remains resilient despite a more challenging investment environment.

Key highlights:

• Bond yields climb: Renewed central bank tightening pushes yields higher, raising borrowing costs and investor return expectations.
• US market concentration: The S&P 500 gains 3.7%, but narrow leadership masks weakness across the broader market.
• UK valuations: UK equities trade at 12.0x forward earnings, offering an 8.3% earnings yield against higher gilt yields.
• OTC trading resilience: Dollar volume reaches $203.5bn, up 23.4% year-on-year despite easing from Q2’s record.
• Regional shifts: London’s share of European trading rises to 23%, while Toronto overtakes London as the second-largest home venue.

The report includes macroeconomic analysis, bond yield trends, equity valuations, sector performance, oil and gas markets, and OTC trading volumes across Europe, Asia and the Americas, including shifts between major exchanges.

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.