Asian/European Markets

The resilient job market has supported stock gains, but Washington policy has been a primary market driver so far this year.

There’s a connection between our willingness to let the debt problem fester and investors throwing their money into a wildly overvalued stock market. In both cases, we’ve grown way too comfortable with uncertainty.

ClearBridge Investments believes tariffs remain the key risk to corporate profits in the second half of the year and is less concerned about geopolitical events or the outlook for fiscal and monetary policy.

A full three months since President Trump’s “Liberation Day” tariff announcements sparked panic in financial markets, macro developments have been benign. The passage of the Big Beautiful Bill has brought clarity on the fiscal outlook, but uncertainty on trade negotiations remains. Franklin Templeton Fixed Income CIO Sonal Desai explains what this means for investors going forward.

The valuation of small-cap stocks relative to large caps remains historically attractive, and small-cap recoveries in the past have resulted in meaningful periods of outperformance.

Compelling bond yields and diverging equity returns offer building blocks for effective strategies.

Franklin Mutual Series shares its mid-year outlook, focusing on corporate fundamentals as a catalyst to unlock value in the midst of ongoing market volatility.

Liberation Day seems like a lifetime ago. But the 90-day pause is almost over, and—thus far—there are few deals that have been consummated.

We expect tariff policy to remain a key part of the narrative pushed by the administration.

In this month’s issue, Franklin Templeton Emerging Markets Equity explains how markets in many regions are weathering US policy uncertainty and offers an upbeat assessment of Vietnam after a recent research visit.

Our strategy work and quantitative insights suggest the conditions behind more than a decade of U.S. equity outperformance are starting to shift.

Looking at the first half of 2025 reveals a nuanced landscape for private equity (PE) and principal investors.

ClearBridge Investments believes positive forces from One Big Beautiful Bill Act passage and future interest rate cuts should soon outweigh negative forces of tariff actions.

Markets rebounded sharply in 2Q 2025 following April’s tariff-driven selloff. Our mid-year market outlook breaks down the recovery, Fed policy, and where to invest next.

Tariff volatility rocked markets for much of the second quarter, creating pressure on U.S. bonds and equities. In the challenging environment, rife with uncertainty and investor concern, a handful of funds generated significant performance.

How the Matthews Emerging Markets Equity Fund’s strategy helped it achieve outperformance during a historic period for global markets.

If you’ve been following the mainstream financial media lately, you might think the airline industry is in crisis. From headlines about tariffs and labor costs to geopolitical tensions and delays at Newark Airport, it sounds like air travel should be tanking.

We upgrade equities to neutral from underweight as falling interest rates and improving economic conditions in emerging markets offset uncertainty over US tariff policies.

It was a positive quarter for emerging markets equities.

The earnings bar is fairly low for the second quarter, setting companies up for a potential easy jump—but there will likely be more focus on forward guidance.

As the second half gets underway, we think a modest overweight to risk assets is called for.

This year, so far, the world has been riddled with geopolitical news, resonating in widespread unrest, yet seemingly yielding less impact on financial markets.

Below, we recount highlights from constituents of the ROBO Global Robotics and Automation Index (ROBO) and the ROBO Global Artificial Intelligence Index (THNQ).

Semiconductor equities and related ETFs notched impressive performances in the first half of the year. They were buoyed by ongoing enthusiasm for the AI trade and post-Liberation Day resurgence by the Magnificent Seven.

In last week’s letter, I referenced Torsten Sløk’s excellent midyear outlook for Apollo Global Management. Today I’ll share some longer quotes which will, I hope, help you visualize where the economy is headed.

Tariffs have been the dominant theme in economic policy this year. While President Trump has long held protectionist views, his administration’s approach to international commerce has been more belligerent than was seen in his first term.

The bull market is alive and well, even amid widespread talk of the “death of U.S. exceptionalism.

Investors looking for cash flow from commercial real estate may want to check out the debt side.

After a tumultuous few months, June of 2025 saw a strong rally which took global markets to (or close to) new highs. The rally was broad-based, with international and U.S. markets all up strongly.

From investing to economics to politics, patterns emerge, lessons resurface and the past becomes a powerful guide for navigating today’s unpredictable landscape. Timing, perspective and adaptability can make all the difference in managing the complexities of modern markets.

As the global economy navigates a complex landscape, investors are left wondering: are they right to be optimistic or are they being complacent? This article from Franklin Templeton Institute explores the signs of resilience as well as numerous risks.

Sharp U.S. policy shift and elevated uncertainty reflect an evolution of the new macro regime. What matters: getting a grip on uncertainty by identifying its core features.

Some say private credit hasn’t been tested. We disagree…and stress can sharpen the senses.

The first half of 2025 may not have been kind to private equity, but new data suggests that things could turn around soon.

Israel-Iran hostilities brought a short-term market focus on oil. Longer term, artificial intelligence (AI) electricity needs could create a power shortage, as well as opportunities and risks for investors.

Equity markets continued to march higher in June, seemingly unfazed by heightened Middle East tensions (which were short-lived) and the looming July 8 deadline for the administration’s pause on reciprocal tariffs.

An economy cannot subsist on services alone.

The US economy is important, but it’s not the only one in a global approach.

In recent months, markets have whipsawed amid changes in trade policy, geopolitical shocks, concerns about fiscal sustainability, challenges to central bank independence, technological advancements, and earnings surprises in both directions. Despite this, stocks and bonds in much of the world are close to where they began the year.

When the Fed increased the M2 money supply by over 40% during the COVID crisis, our instinct was that the implications would extend far beyond a temporary boost to the U.S. stock market and higher inflation. That intuition is proving accurate. We’re now seeing the long-term ripple effects play out in real time across multiple asset classes and global markets.

For good reasons, many investors have a love-hate relationship with commodity investments. Operationally, the annoying K-1 form complicates tax filing, although thankfully the industry has started to launch “no K-1” funds.

This year’s formidable challenges have clarified strategic lessons for equity investors to apply in the coming months

The marathon Senate budget vote took center stage early and stocks slipped from yesterday's all-time highs. Job openings, Powell, and manufacturing data are top of mind.

India has seen foreigners leaving the market for most of 2025. For this and other reasons, India has become one of the bigger shorts in our Systematic Global Macro Strategy’s equity portfolio

Markets notched fresh all-time highs on Friday with a positive tone and geopolitical outlook. Swift retreat in oil back to pre-strike levels, combined with friendlier NATO negotiations and de-escalated fighting in Iran restored risk appetite.

A potential conflict with Iran has consistently appeared in our monthly Market Risk Monitor for over two years. Now that risk has materialized. Our equity portfolio managers assess the implications for global markets.

Easing trade tensions and hopes the Senate could pass a budget gave stocks an early lift after Friday's record highs. The week is packed with jobs news and Powell talks tomorrow.