European equities have rebounded since our last Equity Committee meeting on 10 March, thanks to a significant easing of geopolitical tensions, driven by a temporary ceasefire between the US and Iran in early April.

Market, regulatory, and geopolitical trends are influencing the way investors are engaging with investee companies. In 2025, shareholders sponsored fewer resolutions, while large institutions withdrew from some large collaborative initiatives, causing them to be restructured or cancelled.

Back to fundamentals

In an environment marked by shifting correlations, macro uncertainty and episodic volatility, traditional portfolio constructions are facing increasing limitations. The diversification benefits of equities and bonds have become less reliable, prompting investors to seek new sources of return.

Since the end of February, global credit markets have been driven by the escalation of the US-Iran conflict and rising tensions across the Middle East. While geopolitical risks are not new, the intensity and speed of this episode took markets by surprise.

Since late February, global markets have been shaped by renewed geopolitical tensions in the Middle East, triggering a sharp increase in oil prices and reigniting inflation concerns.

The main focus remains the ongoing situation in the Middle East, and any signs of an agreement.

The war in Iran and signs of a diplomatic solution will remain investors top focus.