USA

Year to Date (YTD)

Commentary: The U.S. economy remained resilient though momentum has moderated. Growth continues to be supported by steady consumer spending, even as households face tighter credit conditions and lingering price pressures. The labour market improved slightly, with payrolls rising by about 130,000 and unemployment edging down to 4.3%. Inflation eased more than expected, with annual CPI slowing to 2.4% as food and energy pressures softened. Cooling inflation has strengthened expectations that the Federal Reserve may consider rate cuts later in the year, even as monetary policy remains unchanged for now. Equity markets were broadly stable, with the S&P 500 posting a modest return of 0.5% YTD, supported by strength in financials despite weakness in software stocks. 

Europe & UK

Year to Date (YTD)

Commentary: The euro area economy remained largely subdued with Germany, France and Italy showing only slight improvement while Spain continued to outperform. Growth was still driven mainly by services and household spending, as manufacturing stayed subdued. Inflation eased further to around 1.7%, reflecting softer energy and food prices, while core inflation continued to moderate. The European Central Bank kept interest rates unchanged as policymakers judged that inflation was moving sustainably toward target but maintained a cautious stance amid slow growth and geopolitical risks. Labour markets remained broadly stable across the bloc, with unemployment holding near recent lows. The Eurostoxx 50 is up by 5.4% YTD.

Malta

Year to Date (YTD)

Commentary: Malta’s economy remained on a steady path through with updated projections keeping growth close to 3.7% as domestic demand and tourism continued to support activity. Inflation eased to around 2.4% by late 2025 and remained largely stable, while unemployment stayed low at roughly 2.7%, reflecting a tight labour market. Public debt hovered near 47% of GDP, consistent with earlier forecasts that deficits would narrow gradually. Financial market liquidity issues persisted despite stable corporate performance, and trading volumes remained thin. The MALTEX index edged up to around 3,786 points in February 2026 and is now up 2.4%.