The positive market sentiment that gained momentum in May continued into July, driven by greater clarity regarding US tariffs. This creates better conditions for companies to make long-term investment decisions. In addition to political and macroeconomic factors, the second-quarter reporting season has been a pleasant surprise. So far, 82% of companies in the S&P 500 have reported earnings above analysts’ expectations, with average earnings growth of around 10%. If this continues when all reports are in, it will mark the third consecutive quarter of double-digit earnings growth for the S&P 500 (FactSet).
The US stock market had another strong month, with positive reports from the technology sector combined with increased risk appetite and new tariff agreements supporting the market. Both the Nasdaq and the S&P 500 reached new record levels on 28 July, before falling back slightly and ending the month with gains of 3.7% and 2.2% respectively.
The Nordic stock markets showed mixed performance in July. The Stockholm Stock Exchange stood out with a strong month, with the OMX 30 rising by around 3.5%, driven by several strong reports, particularly from the influential engineering sector. The Copenhagen Stock Exchange, on the other hand, continued to be weighed down by Novo Nordisk, which was forced to lower its full-year forecast during the month, causing the share price to fall.
We also enclose the report ‘On the importance of being long-term and fact-based 2025’. Despite recurring crises, the global economy has grown by an average of 3% per year for over a century, reminding us of the importance of maintaining a calm, long-term perspective even in times of change.
As confirmation of our strategy, our Nordic fund, Nordic Equities Strategy, was recognised in late spring by Lipper France, where it was named the best Nordic fund in France over the past five years. *
We at Nordic Equities wish you a pleasant summer!
Contact mail@nordeq.se to read Jonas’ publication ‘On the importance of being long-term and fact-based 2025’.
*The fund’s performance is in SEK and is reported after dividends and fees. Inflation is not taken into account. Historical returns are no guarantee of future returns. The money invested in the fund may increase or decrease in value, and there is no guarantee that an investor will get back the amount invested.
Fact sheets and information brochures are available on request or at www.nordeq.se.
