Ativo 2026 Q1 Commentary

Tuesday, May 26, 2026

The first quarter of 2026 began with broad market participation and capital rotating into value-oriented sectors, before geopolitical shocks took center stage. Iranian disruptions to shipping in the Strait of Hormuz sent Brent crude above $100 per barrel, while aggressive U.S. trade tariffs on Canada, Mexico, and China rattled global supply chains and dampened consumer confidence. Central banks navigated a difficult balancing act, with the Fed holding rates steady while the ECB slashed its growth forecast, shifting the dominant investor narrative from soft landing hopes toward stagflation risk by quarter-end.

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