UBS On-Air: Market Moves

June has commenced and summer is just around the corner. US equities however have not waited for summer to heat up, as the S&P 500 last week completed its ninth straight positive week. There exists however concern that this rally is overdone and at risk of a pullback. Jason Draho, Head of Asset Allocation Americas, reflects on current market conditions, drivers and provides an investment outlook. Host: Daniel Cassidy

Oil prices have edged higher on the lack of any discernible progress toward an Iran-US agreement. As with reports of an imminent deal last week, the reaction is muted. A jaded cynicism has come over investors, and in the absence of a definite statement from Iran there is a tendency to downplay comments from the US administration.

Every technology shift redraws the market leaderboard. From mainframe to PC, to internet and mobile, history shows it is not only about what stocks to own, but also what stocks not to own. Incumbents rarely win the next era, while profits shift to platforms and networks built on top of the hardware layer. In AI, companies fastest to reach platform mode, combining intelligence and application layers, are likely to define the next generation of market leaders.

Aakash Doshi, Head of Gold Strategy at State Street Investment Management, drops by the Talking Markets Podcast to outline the investment case for gold against a backdrop of geopolitical uncertainty. Aakash weighs in on price volatility, how he sees gold demand evolving, and how the structural factors that supported the gold market run in recent years have been impacted by recent geopolitical risk factors. Host: Daniel Cassidy

Energy markets gave a cautious response to reports the US and Iran may extend the terms of the “ceasefire”. Key approvals are missing—US President Trump wishes to think about it, which will take a couple of days. Market caution also reflects the more muted tone from the Iranian side. Energy markets need to consider a post-war environment—how quickly production normalizes, what damage must be repaired, and what a newly empowered Iran means.