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Why the environmental transition is fuelling the next boom in energy, industry and resources

European equities have risen since our last Equity Committee in May, driven by fading Middle East geopolitical risks.

The US-Iran framework deal announced on Sunday and the broader de-escalation that it offers reinforces a macro backdrop that should be attractive for emerging markets (EM). We believe that if this agreement succeeds, the potential for lower geopolitical risk, softer oil prices, easing inflation pressures and a weaker USD provide a constructive environment for EM.

The structural shift towards European autonomy is already underway in the technology sector. Having relied on American and Asian capabilities for too long, Europe is now committed to reducing its technological dependence by strengthening its domestic capacities in strategic areas.

European equities have experienced a slight contraction since the last Equity Committee in April, amid several macroeconomic headwinds. The collapse of Middle East ceasefire talks renewed geopolitical concerns and disrupted supply chains.

The environmental transition has entered a new phase. What was once seen as a gradual, policy-led shift is unfolding as a faster, economically driven transformation. Technology, cost dynamics and rising physical risks are converging, turning environmental change into a central force redefining growth, capital allocation and corporate strategy.

Recent geopolitical tensions in the Middle East have triggered renewed energy and supply shocks in Europe, exposing the continent's reliance on external dependencies.

In a recent Explore webinar, Candriam CIO Nicolas Forest, alongside Chief Economist Florence Pisani, Co-Global Head of Equity Management Johan Van der Biest and Head of Emerging Markets Equities Paulo Salazar, shared their views on the impact of the Strait of Hormuz closure, the general feeling of the markets and explored the trends to be aware of across equities.