Hello,

As we move further into 2026, it is clear that markets continue to be shaped by global events. March was a challenging month for investors, with rising geopolitical tensions and higher energy prices causing increased market uncertainty.

What drove markets in March?

The main focus was on developments involving Iran and the wider Middle East. Concerns about possible disruption to oil supplies and major shipping routes led to a sharp rise in oil prices. At one point, oil experienced one of its strongest monthly increases in many years.

Higher energy prices raised fears that inflation could pick up again and that global economic growth could slow. These worries made investors more cautious and led to a pullback across many markets.

Interest rates and central banks

Central banks still believe that interest rates are likely at or near their peak. However, given recent inflation concerns, they are being careful about cutting rates too quickly. Decisions over the coming months will depend heavily on economic data, particularly inflation and growth figures.

How did markets perform?

Shares:
Global share markets had a weak month overall. European and Asian markets fell the most, while the US also ended the month lower. The UK market held up slightly better than others, helped by strong performance from energy and mining companies, which tend to benefit from higher commodity prices.

Bonds:
Bond markets also faced challenges. Expectations for quicker interest rate cuts were scaled back, causing government bond prices to fall. Corporate bonds weakened too, as investors became more cautious about economic growth.

Gold:
Despite ongoing geopolitical tensions, gold had a disappointing month. Prices fell sharply as some investors sold holdings to lock in earlier gains. This was a reminder that even traditionally defensive assets can fall when market sentiment shifts quickly.

Commodities:
Energy markets were the standout performers, with oil prices rising on supply concerns. Other commodities, such as industrial metals and agricultural products, showed mixed performance.

The year so far

By the end of the first quarter:

• Global shares were slightly down for the year
• Larger companies performed better than smaller ones
• More established, value-focused businesses outperformed faster-growing companies

Bond investors benefited from higher income levels, which helped offset some price falls. Gold ended the quarter close to where it started, with March’s losses cancelling out earlier gains.

Looking ahead

A few key areas remain firmly in focus:

• Ongoing developments in the Middle East and their impact on oil prices
• How inflation trends evolve over the coming months
• When central banks may feel confident enough to start cutting interest rates

If energy prices stabilise and growth slows, interest rate cuts later in the year remain possible. However, if oil prices stay high, central banks may move more cautiously than expected.

What this means for you

While recent market movements may feel unsettling, short‑term volatility is a normal part of investing, especially during periods of geopolitical tension and economic uncertainty.

It is important to remember that:

• Market setbacks are expected from time to time and do not usually change long‑term investment outcomes.
• Well‑diversified portfolios are designed to cope with periods like this, spreading risk across different asset types rather than relying on any single area to perform well.
• Trying to react to short‑term news can often do more harm than good. Markets tend to move quickly, and predicting short‑term direction is extremely difficult.

As always, your investments remain aligned with your personal goals, time horizon and attitude to risk. We continue to monitor developments closely and will make adjustments where appropriate, keeping your long‑term objectives firmly in focus.

If you have any questions or would like to discuss your portfolio in more detail, please do not hesitate to get in touch.

Kind regards,

iPensions Wealth Team

Sources

Invesco Asset Management Limited – Inside the markets dated 31 March 2026

M&G Wealth Investment Insights – Weekly market commentary 10 April 2026

Investment risks

Past performance is not a guide to future returns. The value of investments and any income may go down as well as up This may be partly the result of exchange rate fluctuations) and an investor may not get back the full amount invested. The information, data, analysis, and opinions presented herein are provided as of the date written and are subject to change without notice. Every effort has been made to ensure the accuracy of the information provided, but iPensions Wealth Limited makes no warranty, express or implied regarding such information.

Important Information

This communication is for iPensions Wealth Clients only and is not for general consumer use.

Where individuals or the business have expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals and are subject to change without notice. This document is marketing material and is not intended as a recommendation to invest in any particular asset class, security or strategy. The commentary does not constitute investment, legal, tax or other advice and is supplied for information purposes only. Issued by iPensions Wealth Limited, Second Floor, Marshall House, 2 Park Avenue, Sale, M33 6HE, UK. Authorised and regulated by the Financial Conduct Authority.