Following the positive trend in April and May, European and Nordic equity markets continued to rise throughout June. The MSCI World Index remained virtually unchanged, whilst the US S&P 500 fell by 1.32 %. The European STOXX Europe 600 rose by 2.51 % and the Swedish OMXS30 increased by 2.08 %.
Market performance was characterised by continued strong underlying earnings growth in many high-quality companies, whilst the market’s focus gradually shifted away from geopolitical uncertainty and back towards corporate performance. Investments linked to artificial intelligence, digitalisation and productivity continued to be key drivers of market performance.
Overall, the earnings season has confirmed stable performance across many companies. A large majority of US companies exceeded analysts’ expectations, and earnings growth was the highest since the end of 2021. Moreover, the trend was broad-based, encompassing companies in the technology, industrials, materials and consumer sectors.
Within the technology sector, investment in AI infrastructure, data centres and cloud services continues to rise. At the same time, there are increasing signs that artificial intelligence is gradually contributing to higher productivity across several parts of the economy, which strengthens the prospects for continued strong performance in companies that are well-positioned in digitalisation, automation and related infrastructure.
At the same time, industrial companies with exposure to electrification, automation and energy efficiency continue to show stable demand. The market favours companies with good earnings visibility, strong market positions and structural growth opportunities.
Macroeconomic trends continue to vary across different regions. In June, the Federal Reserve opted to leave its key interest rate unchanged, as did the Riksbank. The European Central Bank, however, raised its key interest rate against a backdrop of continued underlying inflationary pressure. The US economy continues to perform relatively steadily, with a strong labour market.
During the month, the Japanese yen continued to weaken and is now trading at its weakest level against the US dollar in around 40 years. This development is primarily a consequence of the Bank of Japan having pursued a significantly more expansionary monetary policy than other major central banks for a long time. A weak yen boosts the competitiveness of many Japanese exporters, whilst higher import prices contribute to increased inflationary pressure in the domestic economy.
With a constant flow of information, it is essential to distinguish between what is structural and what is temporary. Our investment model, Outside View, is based on placing current events in a historical and global context.
On 29 June, our Swedish fund, NE Sweden, was featured on Di-TV after ranking first amongst around 100 Swedish funds in terms of returns since the start of the year.
As at 30 June 2026, our Nordic fund, NE Strategy, has received the highest rating, 5 out of 5, for Consistent Return over 5 years, 10 years and since inception. The fund also has the highest rating, 5 out of 5, for Total Return over 3 years, 5 years and since inception. Total Return and Consistent Return are rating categories within the LSEG Lipper Leaders Rating System and are based on the fund’s historical risk-adjusted returns relative to comparable funds. In 2024, the fund was also named Europe’s best Nordic fund over a five-year period.
The history of the equity market shows that periods of geopolitical turmoil, interest rate changes, currency fluctuations and economic uncertainty recur at regular intervals; yet, despite this, companies with strong competitiveness, high innovation capacity and sustainable profit growth have continued to create significant value for their shareholders. History shows that it is rarely short-term events that determine long-term returns, but rather companies’ ability to adapt to changing conditions and continue to develop their businesses.
During the first half of 2026, we have noted increased interest in funds with a clear investment philosophy, a long track record and a consistent investment process. In an environment where interest rates, inflation, the geopolitical situation and rapid technological development continue to influence market sentiment, confidence in the investment management model becomes particularly important.
We focus on companies with sustainable earnings growth, pricing power, a flexible cost structure, a strong balance sheet and cash flow generation, as well as a proven ability to capitalise on long-term growth trends.
In an environment characterised by both structural growth opportunities and macroeconomic changes, we believe that the selection of companies will remain crucial to future returns.
Fact sheets and information brochures are available on request or at www.nordeq.se
