Henderson Smaller Companies Investment Trust PLC Fund Data

Global equities rose moderately in June in local currency terms. Ongoing tensions between the US and Iran weighed on investor sentiment early in the month, but equity markets rebounded around mid-month as the two countries signed a 'memorandum of understanding' that raised optimism about a more permanent agreement that would reopen the Strait of Hormuz. Oil prices fell as a result and eased some inflationary pressures. However, technology shares dropped amid renewed concerns about the substantial investments in artificial intelligence (AI). The US Federal Reserve (Fed) left interest rates unchanged at its June meeting, but new Chair Kevin Warsh struck a hawkish tone by emphasising the importance of price stability and keeping inflation in check. Stronger-than-anticipated US job market data and US annual inflation reaching a three-year high in May also contributed to markets pricing in a potential rate hike in the coming months. European and UK equity markets were aided by hopes of a peace deal between the US and Iran. The European Central Bank (ECB) raised its key deposit rate, but the move was widely expected. The Bank of England (BoE) left rates unchanged but lowered its inflation forecast. However, increased political uncertainty moderated sentiment as Prime Minister Keir Starmer announced his resignation, with Andy Burnham widely expected to succeed him in July. By sector, healthcare was the strongest performer, with typically more defensive areas faring better amid worries about the levels of spending on artificial intelligence (AI) and the possibility of interest rate hikes. The financial sector benefited from expectations that the Fed may tighten borrowing conditions by raising interest rates. The basic materials sector fared worst as metals prices, particularly gold, generally declined. The energy sector was the second weakest as oil prices fell. Telecommunications and technology were among the other underperformers due to concerns about elevated share prices following a lengthy rally led by stocks associated with AI. Europe was the top-performing region in the index. Here, lower energy prices and a wider shift away from US technology stocks aided the region. Asia Pacific ex Japan also outperformed the index, while Japan and US equities lagged slightly. Emerging markets were weakest, with the stronger US dollar and falling commodity prices among the headwinds.

Global equities rose moderately in June in local currency terms. Ongoing tensions between the US and Iran weighed on investor sentiment early in the month, but equity markets rebounded around mid-month as the two countries signed a 'memorandum of understanding' that raised optimism about a more permanent agreement that would reopen the Strait of Hormuz. Oil prices fell as a result and eased some inflationary pressures. However, technology shares dropped amid renewed concerns about the substantial investments in artificial intelligence (AI). The US Federal Reserve (Fed) left interest rates unchanged at its June meeting, but new Chair Kevin Warsh struck a hawkish tone by emphasising the importance of price stability and keeping inflation in check. Stronger-than-anticipated US job market data and US annual inflation reaching a three-year high in May also contributed to markets pricing in a potential rate hike in the coming months. European and UK equity markets were aided by hopes of a peace deal between the US and Iran. The European Central Bank (ECB) raised its key deposit rate, but the move was widely expected. The Bank of England (BoE) left rates unchanged but lowered its inflation forecast. However, increased political uncertainty moderated sentiment as Prime Minister Keir Starmer announced his resignation, with Andy Burnham widely expected to succeed him in July. By sector, healthcare was the strongest performer, with typically more defensive areas faring better amid worries about the levels of spending on artificial intelligence (AI) and the possibility of interest rate hikes. The financial sector benefited from expectations that the Fed may tighten borrowing conditions by raising interest rates. The basic materials sector fared worst as metals prices, particularly gold, generally declined. The energy sector was the second weakest as oil prices fell. Telecommunications and technology were among the other underperformers due to concerns about elevated share prices following a lengthy rally led by stocks associated with AI. Europe was the top-performing region in the index. Here, lower energy prices and a wider shift away from US technology stocks aided the region. Asia Pacific ex Japan also outperformed the index, while Japan and US equities lagged slightly. Emerging markets were weakest, with the stronger US dollar and falling commodity prices among the headwinds.