July has shown us that markets can adapt to new realities, even when these involve heightened uncertainty and unconventional trade policies. Over the past month, markets have weathered the announcement of landmark trade agreements between the US, EU, and Japan, providing much-needed clarity on tariffs and the direction of global commerce. While the new 15% tariff rates are certainly being felt, investor sentiment has remained resilient thanks to the reduced risk of a full-blown trade war and renewed commitments to cross-border investment and supply chain stability.

Stronger-than-expected GDP and robust earnings, especially from technology leaders, helped to offset concerns about ongoing trade tensions. At the same time, central banks have taken a ‘wait-and-see’ stance, holding rates steady as they monitor how these evolving policies are feeding through to inflation and growth.

Not all economies have received equivalent treatment. Switzerland, for example, is contending with steep US tariffs, though the overall impact is softened by exemptions on key exports and the strength of the country’s institutions. Meanwhile, investor appetite for risk remains strong, with high-volatility stocks outpacing their more defensive peers: a sign that opportunity is being embraced over caution, at least for now.

We hope you enjoy reading these updates and find them helpful for the month ahead.