Market Updates
Geopolitical tensions, cautious central banks and resilient equity markets have created a complex backdrop.
A ceasefire is in place, but the Strait of Hormuz remains closed,
keeping upward pressures on the prices of oil, gas and key raw materials used in fertiliser,
metals and semiconductor production. These supply constraints are likely to persist and could
continue to influence markets in the months ahead.
Economic data was mixed and uncertainty remains high. Major central banks left rates unchanged while highlighting inflation risks. The Bank of England
outlined scenarios suggesting further rate hikes this year, followed by cuts later in the cycle,
underscoring the difficult policy trade-off.
Despite elevated oil prices, equities rallied over the month, led by the US as earnings came into focus. Mega-cap technology results beat expectations, though market reactions were mixed, with Meta in particular falling after raising capital expenditure guidance.
During the month, we reduced exposure to both UK and European equities, removing our tactical overweight in both regions. We added exposure to
short-dated bonds as a further defensive tilt, with a view to protecting investor capital from
any future equity market volatility.
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Our underweight exposure to global equities,
particularly the US market, had a negative impact relative to the Strategic Asset Allocation.
Markets rallied strongly as investors priced in a short conflict in the Middle East and continued
resilience in corporate earnings.
Portfolios remain modestly underweight equities, with a particular focus on US equities, and overweight bonds. This reflects ongoing concerns around elevated equity valuations and the risk that any escalation in the Middle East could begin to
weigh on economic growth.
Take a look at our latest asset allocation in the Omnis Managed Portfolio Service.
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 May 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.
