Dublin, 18th June 2026
- Global equities began 2026 on a solid footing, extending the positive momentum from late 2025. January and February gains were led by European and emerging-market equities, while U.S. technology stocks lagged amid a rotation away from concentrated growth exposures. However, extreme events in March came to dominate year-to-date performance. Following the escalation of the Middle East conflict, global equity markets declined, with Japan, Emerging Markets and Europe underperforming the U.S. in March, reflecting higher conflict exposure and lower energy self-sufficiency. While we are monitoring developments closely, our base case is for the recent energy price spike to be temporary. In the US, a combination of easier fiscal policy and strong business capex suggests GDP growth will still be strong in 2026/27.
- During the quarter, global equities returned -1.7% (in Euro terms), as measured by the MSCI World Index, underperforming emerging market equities, whichreturned 1.8%. The MSCI Europe Index had a return of -0.9%.
- The European Central Bank (ECB) kept policy rates unchanged throughout Q1. Inflation data remained mixed across Europe, with upside surprises in France and Spain offset by easing pressures in Germany, where business sentiment improved modestly.
- In the U.S. the Federal Reserve held policy rates steady during the quarter, adopting a more cautious stance as growth and inflation signals remained mixed. Fears of a full closure of the Strait of Hormuz and the resulting surge in oil and gas prices fuelled inflation concerns in March, triggering a sharp rise in nominal yields in the U.S.
Looking ahead, equity markets remain highly sensitive to geopolitical developments. Ongoing talks between the U.S. and Iran in April offer some potential for de-escalation, but uncertainty remains elevated. Persistently higher energy prices pose a dual challenge: lifting inflation expectations while weighing on growth prospects, increasing the risk of a broader economic slowdown. While earnings fundamentals remain broadly supportive, market direction is likely to be driven by geopolitical outcomes, energy prices and the balance between inflation control and growth resilience.
Please note: The value of your fund may go up as well as down. Past performance is not a reliable guide to future performance.
About LifeSight
LifeSight is WTW’s master trust and defined contribution single trust solution in Ireland. Master trust is a defined contribution multi-employer pension trust for employers looking to offer their employees a high-quality, lower-risk, market-competitive pension, without the governance burden.
Running a defined contribution pension scheme can be complex and costly for a lot of employers. LifeSight’s master trust looks after the day-to-day running of the pension scheme, whilst a professional trustee board looks after the interests of savers.
LifeSight offers access to a leading digitalised platform, including its innovative ageOmeter tool. Combined with our proven expertise in investments and communications, LifeSight is the complete package. LifeSight is also a well-established solution in the UK.
About WTW
At WTW (NASDAQ: WTW), we provide data-driven, insight-led solutions in the areas of people, risk and capital. Leveraging the global view and local expertise of our colleagues serving 140 countries and markets, we help organisations sharpen their strategy, enhance organisational resilience, motivate their workforce and maximise performance.
Working shoulder to shoulder with our clients, we uncover opportunities for sustainable success—and provide perspective that moves you. Learn more at wtwco.com.
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