Mawer Investment Management Q3 2026 Quarterly Update
Equity markets continued to advance in the third quarter, supported by resilient economic growth and generally strong corporate earnings.
In the U.S., profit margins improved across a broad portion of the market, while AI infrastructure and large technology platforms remained important contributors to expected earnings growth.
Energy, materials, and industrials also participated in the year-to-date advance, suggesting that market strength was not limited entirely to a small group of technology companies.
Energy was among the stronger areas of the market.
Disruption around the Strait of Hormuz raised concerns about energy security, pushed oil prices higher, and added to the risk that elevated inflation could remain persistent.
While higher energy prices supported traditional energy companies, they also increased pressure on consumers and businesses already facing elevated borrowing costs.
Fixed income markets were more challenging.
Longer-term government bond yields in developed markets rose meaningfully as investors demanded greater compensation for holding long-term debt.
Persistent inflation, stronger growth expectations, widening fiscal deficits, and a higher term premium all contributed to the move.
The Bank of Canada held its overnight rate steady, while the Federal Reserve, European Central Bank, and Bank of Japan raised rates during the quarter.
As yields rose, bond prices declined, with longer-duration government bonds most affected.
The balancing act between a resilient economic backdrop and numerous risks continues to persist.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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