United StatesTwo powerful forces have reshaped global markets in the first half of 2026. Firstly, the rapid adoption of AI is driving capital investment in data centres and supporting technology. Secondly, outlooks for global economic growth and interest rates have been derailed by conflict in the Middle East. Combined, these forces have reinforced the structural case for investment in energy security, energy and resource efficiency, electrification, and the more efficient digitalisation of economies.
The AI boom brings increasing power demands, whilst energy security has been put at risk by global supply chain disruptions. Alongside this, valuation discipline remains especially crucial at a time of technological transformation. We observe that some areas of the market are being overlooked, or used as sources of capital, even where secular growth opportunities remain firmly intact.
In this mid-year outlook, we discuss four themes that we believe are helping to shape the opportunity set for global equities investors as we approach the second half of 2026: the focus on energy efficiency, the technology sector rally, the ‘K-shaped’ consumer economy and water resilience.