Brooks Macdonald – The Daily Investment Bulletin
Please see the below article from Brooks Macdonald detailing recent market moves amid signs the US–Iran ceasefire is holding. Received this morning 06/05/2026.
What has happened?
Global equities and bonds gained, supported by signs the US–Iran ceasefire is holding. This pushed oil prices lower and eased escalation fears. The S&P 500 (+0.81%) reached a new record high, alongside the NASDAQ (+1.03%) and the Magnificent 7 (+0.26%). Chipmakers once again led the gains, supported by strong results from AMD, whose shares rose sharply in after-hours trading. The Philadelphia Semiconductor Index climbed +4.23%, bringing its total gain since late March to over 50%. European markets also moved higher, with stronger gains across major indices including the DAX and CAC, although the STOXX 600 advanced more modestly as UK equities lagged.
Tentative progress on geopolitics supports sentiment
President Trump indicated that the US would pause its “Project Freedom” initiative in the Strait of Hormuz to allow space for a potential agreement. He pointed to “great progress”, although the outlook remains uncertain, with Iranian officials continuing to push back against US demands. While the situation is still fluid, markets appear encouraged by signs that dialogue is ongoing and that further escalation may be avoided.
UK assets remain under pressure as political uncertainty builds
In contrast, UK markets faced pressure. Gilt yields moved higher, with the 10-year reaching 5.06% and the 30-year hitting its highest level since 1998. The spread between UK and German yields widened to its largest level since October. Investors appear increasingly focused on domestic political risks ahead of the local elections, including speculation around the Prime Minister’s position and the potential implications for fiscal policy and future gilt issuance.
What does Brooks Macdonald think?
Looking ahead, the focus will remain on incoming data and any further signals from policymakers. Today’s final PMI readings across Europe will offer a timely check on economic momentum. More broadly, while markets have responded positively in the near term, maintaining a balanced and diversified approach remains key given the range of risks still in play.
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Alexander James Roberts
06/05/2026