At the start of the last quarter, equity markets continued to rise despite a turbulent environment: crisis in the Middle East, sovereign debt tensions and rise in long-term interest rates. Ostrum AM's scenario from last November is largely borne out: continued rise, volatile first half, year driven by the rebound in profits, even if the paths taken were not those anticipated.In an uncertain environment, earnings growth has become the main performance driver, while valuation multiples are contracting. The question is no longer about the direction of the markets but about the strength of the drivers: investment cycle in AI, record profitability, markets’ ability to absorb the rise in interest rates.Source: Ostrum Asset Management, October 2026. The analyses and opinions expressed in this document represent the view of the named authors. They are issued on the date indicated, are subject to change and should not be interpreted as having any contractual value. 

Each month we share the conclusions from the monthly strategy investment committee which provides a summary of Ostrum AM's views on the economy, strategy and markets.