Denmark's PFA has benefited from strong global equity markets in 2026, with a typical medium-risk customer recording a return of just over 10 per cent.

The pension provider said the three-year return for a typical medium-risk customer was around 42 per cent, as markets remained close to record levels following a strong corporate earnings season.

PFA noted that 86 per cent of companies in the S&P 500 had beaten analysts’ earnings expectations during the latest reporting season, helping support equity markets over the summer.

PFA chief strategist, Tine Choi Danielsen, commented: “We are having one of the strongest accounting seasons since 2021 with broad progress, and where a historically high proportion of companies have beaten expectations for their earnings.

“This can also be seen in stocks, where the S&P 500 is close to a record level. We are pleased about this on behalf of our pension customers, who have benefited greatly from the progress.”

PFA argued that the positive market backdrop had also been supported by relatively robust US economic data.

Despite some signs of weakness, the US labour market remained resilient, while recent manufacturing data continued to suggest solid economic growth.

The provider also pointed to US inflation easing to 3.4 per cent in July.

However, Danielsen warned that risks remained, including inflationary pressures, higher long-term interest rates and geopolitical uncertainty in the Middle East.

“The economy looks robust, but the strong activity in industry and the unrest in the Middle East are also keeping inflation fears alive,” she continued.

“This is directly reflected in the US, where long-term interest rates have once again stuck at a level that we have not seen for a year and a half.”

She added that persistently higher borrowing costs could ultimately weigh on growth and household consumption.

PFA also cautioned that markets were entering what has typically been a more difficult period of the year.

“September, October and November are historically among the worst months in the stock market, and we have seen that it doesn’t take much to tip the balance and affect the mood in a negative direction,” Danielsen stressed.

However, she maintained that the overall outlook for 2026 remained positive.

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