Press release
Standard Chartered H2 2026 Global Market Outlook: Navigating Shifting Sands
Singapore – Standard Chartered (“the Bank”) Wealth Solutions Chief Investment Office (CIO) has released its Global Market Outlook for the second half of 2026, outlining its investment strategy and key themes as investors navigate a more complex and evolving market environment.
The Bank’s CIO expects risky assets to remain supported by a soft-landing macro backdrop, even as investors face increased volatility across energy prices, equity supply, investor positioning and central bank policy. Against this backdrop, the CIO remains Overweight global equities, with a preference for the US and Asia ex-Japan, alongside selective opportunities in fixed income and alternatives.
Reflecting this stance, the CIO team sees further upside in key asset classes, with a target of 7,950 for the US S&P 500 index and USD 5,100 for gold by mid-2027, underscoring the role of equities as a core growth driver and gold as a strategic portfolio diversifier.
Navigating shifting sands
Global equities rose more than 12% year-to-date, supported by strong earnings and AI-driven optimism, despite geopolitical tensions, higher oil prices and elevated bond yields. While this momentum is expected to extend into H2, investors will need to be more nimble as markets adjust to four key pivot points:
- Energy prices: The interim US-Iran peace deal may ease supply constraints and soften oil prices, though risks remain given the temporary nature of the deal and potential delays in restoring full production.
- Equity supply: A strong US IPO pipeline raises the risk of near-term over-supply, although recent successful listings point to resilient investor demand.
- Investor positioning: Optimistic positioning increases the risk of short-term pullbacks, though these may offer opportunities to add exposure.
- Central bank policy: Easing energy prices could reduce pressure to tighten, but resilient labour markets may limit the scope for rate cuts, particularly in the US, with the Fed expected to stay on hold through year-end 2026.
Overall, the Bank’s CIO continues to expect a soft-landing scenario, with a small chance of a strong growth re-acceleration. While recession and stagflation risks remain, softer energy prices reduce the likelihood of these outcomes. The CIO team sees current yield levels as attractive for locking in income, with a preference for EM USD bonds, while gold remains the preferred diversifier alongside core holdings in alternative strategies.
Steve Brice, Global Chief Investment Officer, Standard Chartered, said: “Markets have shown resilience in the first half of the year, supported by strong earnings and ongoing optimism around technology. However, the second half of 2026 is likely to require more active navigation, with several shifting factors influencing investor sentiment and market direction. In this environment, staying invested, maintaining diversification, and being prepared to take advantage of periods of volatility will be key to capturing opportunities. Our latest Global Market Outlook is designed to help clients remain focused on these priorities and navigate the shifting landscape ahead.”
For further information please contact:
Wealth and Retail Banking Communications