President Donald Trump's indefinite extension to the U.S.-Iran ceasefire was a central focus for markets, with asset prices reflecting a mixed outlook. European and Asian stocks showed varied performance, while futures indicated that major U.S. indices were set to open slightly higher [1].
Investment strategists from CNBC's London studios discussed four key strategies to navigate the current environment. Grace Peters, co-head of global investment strategy at J.P. Morgan Private Bank, emphasized the importance of not overreacting to one-off events and instead focusing on enduring structural themes such as security, energy supply chains, physical and cyber security, and modern warfare. Peters recommended sectors like industrials, minerals, mining companies, and real assets as strong portfolio complements, especially given many investors' overweight positions in U.S. and technology sectors. She also highlighted the need for diversification due to increased geopolitical risk [1].
Within the AI sector, Peters identified the infrastructure build-out phase as a current opportunity, favoring semiconductors and hardware over software stocks. She suggested that following physical capital expenditure and considering infrastructure and energy sectors could be beneficial, as the thesis around software's dominance in AI may be harder to disprove in the short term [1].
Sue Noffke, head of U.K. equities at Schroders, pointed out that the FTSE 100 is up over 5% so far this year, with its international-focused companies showing resilience amid the Iran conflict. Noffke argued that London-listed companies are attractively valued compared to global peers, noting a sectoral re-rating since 2021, particularly in banks, energy, commodities, aerospace, defense, and pharmaceuticals. She added that valuations remain appealing, especially among smaller companies, though policy and political uncertainties continue to weigh on the market [1].
Additionally, Latin American stocks outperformed U.S. peers in 2025, with the region's equity indices continuing to advance as the U.S.-Iran war introduces new volatility to international markets [1].
CONCLUSION
Market experts recommend diversification and a focus on enduring structural themes such as security, real assets, and infrastructure amid ongoing geopolitical risks. UK equities and Latin American markets are highlighted for their attractive valuations and resilience, while investors are advised to look beyond technology and consider hardware and energy sectors. The overall market sentiment is cautiously optimistic, with a medium impact expected as investors adjust strategies in response to geopolitical developments.