USA

Year to Date (YTD)

Commentary: The U.S. economy continued to cool while showing resilience. Consumer spending remained the backbone of activity even as tighter financial conditions and rising energy costs dented sentiment, inflation unexpectedly picked up in May with energy the largest contributor and complicating the outlook for incoming Fed Chair Kevin Warsh. The labour market added jobs at a more moderate pace with the unemployment rate roughly unchanged at 4.3%, signalling a “low‑hire” environment rather than a sharp slowdown. Geopolitical tensions remain pertinent as the Iran-US situation keeps oil markets volatile. Markets are lately bullish on the prospect of a peace deal. The S&P 500 is now up 10.4% whilst the NASDAQ is up 14.8%

Europe & UK

Year to Date (YTD)

Commentary: The euro area economic area remained largely subdued with modest growth in the main countries. The Q1 flash estimate of 0.1% growth was followed by weak monthly indicators that pointed to cooling momentum into spring, annual HICP inflation picked up again in May to around 3.2% driven largely by a renewed surge in energy prices alongside persistent services and food inflation. The ECB shifted from a cautious pause to a tighter stance in June, raising the deposit rate by 25 basis points. This was done to address the upside risks to inflation and guard against second‑round effects, which tightened financial condition. Equity markets were volatile but broadly resilient, with the Eurostoxx posting only modest year‑to‑date gains by mid‑June as investors weighed firmer inflation and policy tightening against still‑fragile growth and elevated geopolitical and energy risks.

Malta

Year to Date (YTD)

Commentary: Malta keeps reporting better-than-average economic growth as the country held its general election late in May. The sovereign credit rating was reaffirmed by S&P at 'A-/A-2', maintaining a stable outlook and signaling continued confidence in the country's economic and fiscal trajectory. The European Commission also noted the solid growth fuelled by strong domestic demand and a buoyant tourism industry, though economic growth is expected to ease slightly to 3.7% in 2026 and 3.6% in 2027, as global conditions become less supportive. Government interventions keep helping cushion the impact of elevated international energy prices, yet inflation is still projected to edge up to 2.7% in 2026. The labour market remains tight, and real wages are increasing at a steady pace. The European Commission also noted that the government deficit is forecast to stay below the 3% threshold with Debt/GDP sustained around the 46% mark. The MALTEX is up by 7.8% YTD.