EB-SIM flags higher energy prices as key inflation risk in market outlook
SPY•EB Sustainable Investment Management sees inflation around 3.5% in both Europe and the US, driven mainly by higher energy prices, and expects slower but positive euro zone growth with the US more resilient.
1. Inflation and growth
EB Sustainable Investment Management flagged higher energy prices as a key inflation risk, with inflation seen around 3.5% in Europe and 3.5% in the US. It described euro zone growth as slower but positive and the US as more resilient amid geopolitical risks.
2. Bonds and equities
The firm said higher yields restore income potential in government and corporate bonds, with longer maturities again paying a term premium. It said equities still offer opportunity, but selection matters as higher rates cut valuations; rising earnings expectations have supported prices. Technology accounted for near 30% of the MSCI World, while its top 10 stocks were 27% of the index as of Aug. 31, 2026.
