The second half of 2026 might bring about some "pivot" points that investors will have to navigate carefully, but overall the bank said it remains positioned for a gradual shift in the economic outlook rather than something more dramatic.

Standard Chartered is anticipating that risky assets such as global equities, for example US and Asia ex-Japan stocks, will fare relatively well from a “soft-landing” macro-economic backdrop, the UK-listed bank says in its half-year outlook.

The lender said it also favours selective opportunities in fixed income and alternative assets.

The chief investment office team said it sees further equity upside, predicting that the S&P 500 Index of US stocks will reach 7,950 with gold reaching $5,100 per ounce by the middle of 2027.

“Markets have shown resilience in the first half of the year, supported by strong earnings and ongoing optimism around technology,” Steve Brice, global chief Investment officer, Standard Chartered, said. “However, the second half of 2026 is likely to require more active navigation, with several shifting factors influencing investor sentiment and market direction. In this environment, staying invested, maintaining diversification, and being prepared to take advantage of periods of volatility will be key to capturing opportunities.”

Since the start of 2026, global equities have risen about 12 per cent, aided by earnings growth and AI-driven optimism, offsetting geopolitical tensions, higher oil prices and elevated bond yields, the bank said. Investors will, however, need to be nimbler to adjust to important pivot points, such as energy prices, high equity supply via IPOs; investor optimism and positioning, and central bank policy.

Standard Chartered is continuing to predict a “soft-landing” economic scenario, with a small chance of a strong growth re-acceleration. 

“While recession and stagflation risks remain, softer energy prices reduce the likelihood of these outcomes,” the firm said. 

Existing bond yields are attractive; Standard Chartered said it prefers emerging market dollar-denominated bonds, while it sees gold as its preferred diversifier alongside core holdings in alternative strategies.