Market Update 06/2026 | Equities at New Highs as Focus Returns to Fundamentals; AI's Next Frontier Is Robotics

Equities Reach New All-Time Highs as Iran De-Escalation Renews Focus on Fundamentals; AI's Next Frontier Is Robotics

In June 2026, T&T International maintains an Attractive stance on US, Swiss and European-leader equities, supported by signs of US-Iran de-escalation, a robust earnings season, easing tariff headwinds, expected Fed rate cuts and a recovering manufacturing sector. Equities have reached new all-time highs as markets look past the conflict and refocus on strong fundamentals, though a more selective approach to the AI sector is warranted. UK, India and Taiwan remain Neutral.

In fixed income, High Grade and Investment Grade bonds stay preferred while EM and High Yield remain Neutral, with longer-term rates and credit spreads recovering much of last month's underperformance. In commodities, Copper and Gold are Attractive (Silver and Oil Neutral). In FX, the focus shifts to pro-growth and commodity-linked currencies — AUD, CNY, NZD and SEK are Attractive — while USD, EUR, CHF, CAD and NOK are Neutral; the USD is expected to weaken as energy prices normalise and the Fed resumes easing, and the CHF to underperform as risk appetite returns.

The Topic of the Month — Where AI Will Really Make a Difference — argues that AI's impact on productivity depends less on its raw capabilities than on where it is deployed. Just as steam, electricity and the computer only transformed the economy once applied in new domains, AI's biggest gains may come as AI-powered robots move beyond the factory into supermarkets, warehouses, hospitals, hotels and households — finally lifting productivity in the long-stagnant, labour-intensive service economy.