Market Updates
Strong company earnings lifted equities, while rising yields and geopolitical uncertainty remained in focus.
Strong corporate earnings pushed US and European equities to new all-time highs during the month. AI-related companies led the advance as investors largely shrugged
off concerns following the launch of Moonshot AI’s lower-cost model. Strong demand for advanced memory chips and AI infrastructure, alongside significant technology investment,
continued to support earnings growth and confidence in the longer-term outlook.
Government bond yields moved higher as investors reassessed the outlook for inflation and interest rates. Fed Chair Kevin Warsh’s hawkish comments reinforced expectations that rates could remain higher for longer. Rising yields weighed on interest rate sensitive areas of the market, although resilient economic data helped offset concerns.
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Middle East tensions continued to create uncertainty around energy supplies and inflation. Renewed US–Iran hostilities raised the risk of disruption to key energy routes, which could push oil prices higher, add to inflationary pressures and complicate the outlook for central banks.
There were no changes to portfolio positioning during the month following the trades executed in July. However, the team expects to trade and conduct a full rebalance of the portfolios in the first two weeks of September.
Tactical asset allocation positioning was broadly flat. Holdings in healthcare and energy added value but the underweight position in broader US equities detracted.
The portfolios remain modestly underweight equities and overweight fixed income. The underweight equity position reflects a cautious view on the sustainability of current AI-driven market leadership and elevated valuations. Conversely, higher bond yields provide an attractive starting point for fixed income, offering income and the potential for compounding returns while helping to diversify portfolio risk.
Issued by Omnis Investments, which is authorised and regulated by the Financial Conduct Authority. Registered address: Auckland House, Lydiard Fields, Swindon SN5 8UB. This update reflects our view at the time of writing and is subject to change. The document is for informational purposes only and is not investment advice. We recommend you discuss any investment decisions with your financial adviser. Omnis Investments is unable to provide investment advice. Every effort is made to ensure the accuracy of the information but no assurance or warranties are given. Past performance should not be considered as a guide to future performance. Approved by Omnis Investments on 1 September 2026.
Email info@thepennygroup.co.uk or call 0207 061 2345 if you have any questions or should you wish to speak to one of our advisers.
