Ongoing conflict in the Middle East and investor concerns that technology companies are overvalued continued to affect market performance. Read on to find out how these factors and others may have impacted your investment portfolio in July 2026.

Markets started the month with a sell-off of chip stocks as investors lost enthusiasm for AI. Asian markets were particularly affected on 2 July, with South Korea index the KOSPI suffering an 8% loss.

Despite poor job data, US markets made gains on 2 July. Some investors believed that the slowdown could ward off potential interest rate hikes, which led to the broad S&P 500 index rising 0.4%.

The view that central banks will be reluctant to increase interest rates in major economies continued to have an effect on 3 July in Europe. Main indices in the UK and Germany saw rises.

When markets reopened following the weekend on 6 July, European markets slipped. The pan-European index Stoxx 600 was down 0.4%, with the worst performer, Dutch chip equipment company BE Semiconductor Industries, down 6.8%. It was a different story in the US, where markets lifted on opening.

An Iranian attack on a tanker in the Strait of Hormuz alongside investors questioning the valuation of AI companies led to markets dipping on 8 July. London’s FTSE 100 index was 1.2% lower on opening, and indices in Italy, Germany, and the US were similarly affected.

On 9 July, the UK’s biggest pharmaceutical company, AstraZeneca, became the biggest loser on the FTSE 100 after a new heart drug failed a late-stage clinical trial. The company’s shares fell sharply by 9.2% and pulled the FTSE 100 down by 0.5%.

Tensions in the Middle East have led to oil prices rising, which is affecting airlines. On 13 July, European airline stocks fell, and the travel and leisure index on the Stoxx Europe 600 was down 1.2%. Many company shares were also affected, including Ryanair (-0.9%), Air France (-2.4%), and British Airways owner International Airlines Group (-1.9%).

The following day, ongoing strikes in the Middle East led to oil prices rising 3.5% and European shares falling in response.

Technology valuation concerns reared their heads again on 17 July. The resulting sell-off led to Japan’s Nikkei 225 index dropping almost 5%, while Japanese chipmaker Kioxia tumbled 16%. The sell-off affected European and US markets, though the FTSE 100, which has relatively low exposure to technology, fared better and was up 0.2%.

New UK prime minister, Andy Burnham, has appointed former defence secretary, John Healey, as chancellor. On 21 July, the news led to speculation that Healey would use his new position to boost defence spending. Companies in the sector saw share prices rise as a result, including Babcock International (4%), BAE Systems (2.4%), and QinetiQ (3.5%).

On 27 July, the US paused its strike on Iran, which led to European markets rallying, including the FTSE 100 (0.5%), France’s CAC 40 (1.1%), and Germany’s DAX (1.5%).

On 28 July, yet another AI sell-off saw the KOSPI fall 10%, the Nikkei 225 down 4%, and shares in chipmakers down by more than 10%. Chipmaker CXMT bucked this trend. The company debuted on the Shanghai Stock Exchange, and shares were up more than 400% on its first day of trading.

UK

UK inflation fell faster than expected, reaching a rate of 2.6% in the 12 months to June 2026.

Despite concerns that the conflict in Iran would lead to the economy contracting, data from the Office for National Statistics suggests this wasn’t the case. Indeed, the UK economy grew by 0.1% in May 2026.

Prime Minister Andy Burnham could face difficult decisions in the coming months. The Office for Budget Responsibility warned that tax rises or spending cuts will be needed to avoid debt spiralling. The risk is partly due to an ageing population. Health spending is set to reach 8% of GDP by 2030/31 and climb to 13% by 2075/76.

Purchasing Managers’ Index (PMI) readings, which measure the health of sectors, suggest the UK is struggling. In June, the manufacturing reading remained above the 50 mark at 52.5, which indicates growth, but had fallen when compared to May.

The construction downturn eased slightly, but the PMI reading remained well below the 50 mark at 38.4.

Europe

The eurozone neared its 2% inflation target in June, with a rate of 2.8% after it fell more quickly than expected. The drop was linked to a decline in oil prices and tensions in the Middle East easing. However, events during July 2026 could see inflation start to creep back up.

A factory PMI reading shows the eurozone had its best quarter in almost four years in the three months to the end of June 2026. The 51.4 reading was again linked to the Middle East conflict easing and allowing some trade to resume.

US

US inflation fell more than expected to 3.5% in the 12 months to June 2026. While this is positive news, it’s still above the target of 2%.

Job data released by the Bureau of Labor Statistics revealed only 57,000 new jobs were added in June, well below the expected 110,000. In addition, wages are falling in real terms. The data could suggest businesses are taking a cautious approach.

US president Donald Trump previously pitched trade tariffs as a way to close the deficit in the federal budget and encourage factories to return to the US. However, a Supreme Court ruling deemed the tariffs illegal, and the US has refunded $81 billion (£61 billion), leading to the deficit widening again.

US technology giant Microsoft announced it would cut 4,800 jobs, the equivalent of around 2.1% of its global workforce, in the latest round of layoffs affecting the technology sector. The news comes after shares in the business have fallen by around 19% in the year to 6 July.

Asia

China’s economic data showed GDP growth of 4.3% in the quarter to 30 June. While this figure would be celebrated in other economies, it’s one of the slowest rates on record and lags behind the target of 4.5% to 5%. The dip was linked to sluggish domestic demand.

Indeed, further data shows that China’s exports are surging. Lifted by orders for chips and computing power to support an AI boom, exports were up 27% in June when compared to a year earlier. The boost puts China on track to post a trade surplus of $1 trillion (£0.75 trillion) in 2026 for the second year running.

Speculation that fast-fashion giant Shein would unveil an IPO (initial public offering) has now been confirmed. The company has received approval from Hong Kong. However, the valuation could be lower than expected. In 2022, when Shein considered an IPO in London, it was valued at $100 billion (£74 billion), but reports suggest this will be cut significantly to around $50 billion (£37 billion).

Please note: This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

On 22 June, Keir Starmer announced he would quit as Labour Party leader. The decision had been anticipated in the media, but the changes still pose some uncertainty over the coming weeks. Read on to find out what it could mean for your finances.

The Labour Party will need to decide on a new leader, which could cause market volatility. Once a new leader is in place, they will have control over fiscal policy that could affect business and personal finances.

While a change in political leadership can feel worrisome when you consider your finances, taking a long-term view is important.

Uncertainty may cause market volatility in the coming weeks

Investment markets may experience volatility in response to uncertainty, which could affect the value of your investments.

Following Starmer’s announcement, markets were relatively stable. According to the Guardian (22 June 2026), markets largely “shrugged off the news” as the resignation was expected. Indeed, a domestically focused index, the FTSE 250, was down just 0.01%.

As the new prime minister is announced and sets out their vision for the UK, markets could experience greater volatility, particularly if there are any surprises.

While this might feel disconcerting, keep in mind that short-term volatility is a part of investing, and markets have historically recovered.

In the last decade, the UK has had seven prime ministers, and while periods of volatility followed some of these leadership changes, the overall market trend has been upwards.

So, rather than reviewing your portfolio’s performance each day, take a look at the bigger picture. Assessing performance over several years could highlight an overall trend rather than short-term responses to periods of change.

While you might be tempted to make changes in response to volatility, sticking to your long-term investment strategy instead of making knee-jerk decisions could be beneficial.

It’s important to note that investment returns cannot be guaranteed, and past performance is not a reliable indicator of future performance.

The prime minister may change policies that affect personal finances

The new prime minister might also choose to go in a different direction from the previous one. For example, they could change tax rates or allowances, which might affect your personal finances.

While the potential for change could prompt some people to alter their financial plans, this often isn’t the best course of action.

First, with so much speculation, it can be difficult to know what information is accurate before it’s officially announced. Reacting to a news headline that isn’t confirmed could mean making unnecessary changes to your financial plan, which has the potential to harm your ability to reach your goals.

Second, when changes are unveiled, they often aren’t implemented immediately. So, you will typically have an opportunity to fully assess your options rather than needing to make a snap decision.

As your financial planner, we could alert you if anything might affect your long-term financial plan. We could help you assess how changes might affect you and offer guidance on how to mitigate the potential effects if appropriate.

Contact us

Over the coming weeks, there’s likely to be a lot of speculation about what will happen. Remember, reacting to rumours could lead you to make decisions based on scenarios that don’t materialise or ones that don’t align with your objectives.

If you have any questions about what Starmer’s resignation means for your finances, please get in touch.

Please note: This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.

Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

In a bid to pass more wealth to their loved ones, a growing number of families are opening pensions for their children. Whether your child is still in nursery or already working their way up the career ladder, there could be benefits to making pension contributions on their behalf.

According to an article in the Telegraph (13 June 2026), pension providers have noticed an uptick in the number of pensions opened for a child, with one provider registering a jump of 158%.

This trend is partly being driven by changes to Inheritance Tax (IHT) rules. From 6 April 2027, many pensions will be included in the value of your estate when calculating if IHT is due when you pass away. As a result, some people are opting to contribute to a child’s pension rather than their own.

Whether this strategy is appropriate for you will depend on your personal circumstances and goals, and it’s important to carefully assess the potential implications first.

2 important things to be aware of before contributing to your child’s pension

You can open a pension for your child from the day they are born. In many cases, you can also contribute to a pension that your adult children have. However, you should note:

1. A pension cannot usually be accessed until the pension holder reaches pension age

Before you contribute money to a pension, be sure that it’s the right option for you and your child. Money held in a pension cannot usually be accessed until the pension holder reaches 55 (rising to 57 in 2028 and potentially rising further in the future).

As a result, you would not be able to withdraw the money if you changed your mind. Similarly, your child would not be able to access the money if they wanted to use it for another purpose, such as buying a home, before reaching pension age.

2. The Annual Allowance might limit how much you can tax-efficiently contribute to a pension

The Annual Allowance is the maximum amount of money that can be paid into a pension each tax year before the pension holder could be subject to charges.

In 2026/27, the Annual Allowance is £60,000 or 100% of the pension holder’s annual earnings (whichever is lower). Non-taxpayers, including children, have an Annual Allowance of £3,600. In addition, the Annual Allowance may be lower for higher earners or those who have accessed their pension.

The Annual Allowance covers all contributions, including those made by the pension holder, employers, and third parties. So, it’s important to track what you’re contributing and speak to your child about other contributions that are made to avoid unwittingly exceeding the Annual Allowance.

4 reasons you might regularly contribute to your child’s pension

1. You could support their future

Contributing to your child’s pension allows you to support their future.

According to the government (19 May 2026), many working-age adults are not saving enough for retirement. It’s estimated that 15 million people are undersaving. Additional regular contributions could make their retirement more financially secure and potentially ease pressure on your child’s finances now.

2. Your additional contribution could grow

Pensions are usually invested with the aim of delivering long-term growth. While investment returns cannot be guaranteed, the initial contribution you make has the potential to grow over the long term.

3. Your contributions will usually benefit from tax relief

Assuming your contributions don’t exceed the Annual Allowance, they will typically benefit from tax relief at your child’s nominal rate of Income Tax. This provides an additional immediate boost to your child’s pension and, as the money will be invested, further potential for long-term growth.

4. Your contributions could be efficient for Inheritance Tax purposes

Gifts you make aren’t always outside of your estate for IHT purposes. Some may be included for up to seven years after they are given. However, some allowances could provide a tax-efficient way to pass on wealth.

One of these allowances is regular payments made to another person. The gifts must be made regularly and come out of your regular income without affecting your standard of living. As a result, making monthly contributions to your child’s pension could allow you to make use of this allowance.

It’s a good idea to keep clear records of your gifts as HMRC may look for a regular pattern of gifting if your estate uses this allowance.

Get in touch

Tax and pension rules can be complex, particularly if you want to support a loved one or consider IHT. We could help you create a financial plan that suits you and your family’s needs. Please contact us to arrange a meeting.

Please note: This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.

Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.

The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.

The Financial Conduct Authority does not regulate estate planning, tax planning, or Inheritance Tax planning.

Most people will have multiple financial goals they want to achieve. A common challenge is balancing these competing goals and understanding how to use your assets to work towards them. It’s an area that a financial plan could help you with.

Over the last few months, you’ve read about short-, medium-, and long-term goals that might be important to you and different financial strategies that suit each time frame. Now, read on to find out how a financial plan could help you strike a balance that works for you.

Deciding which goal to focus on can be difficult

Without a tailored financial plan, it might be difficult to understand how you should use your assets to move closer to your goals. For example, if you have £500 left over each month after your regular expenses, would you be better off saving it in case of an emergency or contributing more to your pension?

On top of this, you want to balance working towards goals with enjoying your life now.

Unfortunately, there isn’t a one-size-fits-all solution that’s simple to follow.

Instead, your needs, income, and other financial commitments, along with your goals, will affect what strategies could suit you. A tailored financial plan could help you assess not only how to reach a goal, but how prioritising a certain goal might affect others.

4 ways a financial plan could help balance multiple goals

1. A financial plan identifies your goals

Your goals are central to your financial plan. So, working with a financial planner provides you with an opportunity to clearly set out what’s important to you and identify goals.

As part of creating a financial plan, you might set out clear time frames for when you’d like to reach each goal. In addition, it’s a chance to discuss why these goals are important to you and if they’re realistic, which might change some of your objectives.

For instance, you might have set a goal to have £500,000 in your pension before you’ve calculated how much income you need in retirement or how you’ll use other assets. As a result, after speaking with your financial planner, you might find the amount you need to save into a pension is lower, which could help you support other goals.

Similarly, you could find you’ve underestimated how much you need for a certain goal. Being aware of a potential gap sooner might mean you have more opportunities to close it.

2. A financial plan could model different scenarios

A key challenge to balancing goals is understanding how a decision to allocate to one might affect others. Would reducing pension contributions to build a nest egg for your child affect your security in retirement?

Your financial planner may create a cashflow model that could help you assess the long-term impact of your decisions. To create a cashflow model, you input information like your income and the value of your assets, and set certain assumptions, such as the rate of inflation and investment returns. You can then adjust these assumptions.

It’s important to note that while a cashflow model could provide useful insights, the outcomes are not guaranteed.

3. The data from a cashflow model could help you understand trade-offs

At times, you’ll need to decide which goal is more important to you. A cashflow model could give you access to the information you need to understand trade-offs.

You might look at how changing your pension contributions will affect your disposable income now and the income you might receive in retirement. Would you prefer to reduce your expenses now if it meant you’d have more to spend when you retire?

A cashflow model could be used to explore different scenarios to understand how the decisions you make now could affect various goals, so you can make decisions that align with your priorities.

4. A financial planner could adjust your plan as your goals change

A financial plan you put in place now may not still be suitable for you in 10 years. Over time, your goals and priorities might shift. Regularly meeting with your financial planner to review your plan could help ensure it continues to reflect your goals.

Contact us to talk about your goals

If you’d like our support in creating a financial plan that covers your short-, medium, and long-term goals, please get in touch.

Please note: This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available.

The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.

The Financial Conduct Authority does not regulate cashflow modelling.

Investing is often as much about emotions as it is about numbers. One emotion that might affect how you invest at times is fear. Learning how fear influences investment decisions and how to master it could support your long-term success.

Fear could strike investors in multiple ways

There’s more than one form that fear can take when you’re investing. You might experience a fear of:

• Losing money, which could lead to you being overly cautious. You might even avoid investing altogether because of the perceived risk of losing some or all of your money.
• Making the wrong decision. As an investor, you often have multiple options, and this form of fear could lead to decision paralysis because you overthink or feel overwhelmed.
• Missing out. There’s a lot of investment noise, including people proclaiming that one investment or another is a must-invest. For some investors, this might generate a fear of missing out (FOMO) that could lead to impulsive decisions.
• Not being in control. Multiple factors that aren’t in your control will affect the performance of your investments, and this can be scary. Investors experiencing this type of fear might miss opportunities due to their worries or react in a way that doesn’t align with their strategy when new information is released.

Many things could trigger fear when making investment decisions, such as market volatility or even being reminded that investing involves risk. Indeed, according to FT Adviser (4 June 2026), more than half of UK adults said that reading a risk warning when investing in stocks and shares puts them off investing.

It’s natural to feel some worries in these scenarios, but mastering your fears could improve long-term outcomes.

Fear could lead to decisions that don’t align with your long-term strategy

Fear isn’t necessarily a bad thing when you’re investing. It might prevent you from rushing into an investment that isn’t suitable for you, but it could also harm your decisions.

For example, investing might play an important role in your long-term financial plan. It might help you grow your pension savings with the aim of delivering a more comfortable retirement. However, if you fear losing money, you might choose to hold your assets in cash instead, which would mean missing out on potential investment returns.

Investment returns cannot be guaranteed, and past performance may not be replicated. However, historically, markets have delivered returns over long-term time frames and recovered from periods of downturn.

It’s also important to note that there are different levels of risk when you’re investing, so you can choose opportunities that align with your risk profile. In addition, a balanced portfolio will spread your investments across a variety of assets, so while you might lose money in one area, gains in another could create balance.

A key part of mastering fear so it doesn’t hamper your long-term goals is understanding the difference between perceived and actual risks.

Acting out of fear when investing could make it more difficult to achieve your financial goals and increase stress. So, here are three things to keep in mind when you’re investing.

3 steps that could reduce investment fear

1. Focus on your long-term objectives

Emotional responses are often temporary, as are the factors that trigger them. Instead, focus on what your long-term objectives are. This can help you put current events into perspective and potentially reduce your concerns.

Some investors may find it useful to implement a decision delay, such as waiting at least a day before making any changes. This could provide time for strong emotions to ease and an opportunity to review what’s driving your initial reaction.

2. Recognise that market volatility is normal

One factor that often affects investor emotions is market volatility. However, if you look at past performance, you’ll see that rises and falls in investment values are normal.

Rather than looking at investment values daily or weekly, take a longer-term view. When you look at performance over several years, you’ll often see that the peaks and troughs smooth out, which doesn’t seem as scary.

3. Understand your investment strategy

Take some time to understand why your investment strategy is appropriate for you. Discussing with your financial planner why your risk profile is suitable for your current financial circumstances and overall goals could help ease fears.

A financial planner could reduce the impact of emotions when making financial decisions

Working with a financial planner could help keep emotions, including fear, in check when you’re making financial decisions.

Your financial planner will understand your goals and strategy, so they could provide an objective review of your decisions and factors that you might be worried about. Knowing you have someone who could provide tailored guidance might also help you tune out some of the noise that could trigger emotional responses and allow you to focus on what matters to you.

Please contact us to arrange a meeting with one of our team.

Please note: This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

As a business owner, your personal and business financial values are often closely linked, but they’re not the same. Focusing only on the valuation of your business when assessing whether you’re on track for personal long-term goals could be risky.

In June, tech entrepreneur Elon Musk made headlines by becoming the first trillionaire when his company SpaceX was listed on the NASDAQ stock exchange. Yet, the BBC reports (24 June 2026) that within two weeks, Musk lost his trillionaire status when technology stocks tumbled.

Musk remains the world’s richest person, but the news highlights the potential risk for business owners who rely on their company when assessing wealth. A successful business doesn’t automatically mean you’re building personal wealth, even though the two are connected.

Business and personal value are measured in different ways

The value of your business is often based on factors like profitability, cashflow, recurring revenue, and having a capable management team.

In contrast, your personal value incorporates the assets you hold. Your business is likely to be an important part of this, but it isn’t the whole picture. In addition, you might include assets like properties, savings, pensions, and investments.

Accumulating personal wealth that isn’t tied to your business could give you greater security and flexibility.

The risks of relying too heavily on your business for personal wealth

Relying heavily on your business for your personal wealth and to support long-term goals, such as retirement, could be risky for several reasons, including these three:

1. Business wealth is often illiquid

Wealth held in your business is often illiquid. For example, you might reinvest profits with the aim of increasing your business value further. While this is often a good practice, it could mean your wealth tied up in your business isn’t accessible when you need it.

Imagine you’ve faced some health issues and now plan to retire five years earlier than expected. If you’d planned to use your business to fund retirement, you’ll need to find a buyer, which could take time and might not meet your expectations. As a result, you might be forced to delay retirement even though you’re ready to step back from the business.

In contrast, if you had built up personal wealth that was earmarked for retirement, you might be able to retire or reduce working hours while searching for a buyer of your business.

2. The value of your business could fall

The value of your business can fluctuate, and some of the factors that influence it are outside of your control. If your long-term plans rely on your business’s value, it could harm your ability to achieve them.

As the news about Musk shows, concentrating your wealth in one area has the potential to be risky. Instead, diversifying your wealth could mean you have other assets to fall back on if one loses value.

3. You could miss out on other opportunities to grow your wealth

Focusing on your business as an owner is natural, but it could mean you overlook opportunities to increase your personal wealth.

If your retirement plan consists of selling your business and using the profits to create an income, you might not consider setting up a pension, even if it could be the right option for you. By separating your business and personal values, you may explore other ways to improve your financial position.

We could support business owners

As a business owner, managing your finances might be more complex. We could help you create a tailored financial plan that considers your circumstances. Please contact us to talk about your personal goals and how to support them.

Please note: This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.