A monthly market update featuring global equity and fixed income performance, sector and asset class trends, and key themes shaping the investment landscape.
Key takeaways:
- Global equities advanced in May, with tech-heavy markets in Asia and the U.S. leading the gains. Major benchmarks built on April’s rally, supported by continued AI enthusiasm and strong earnings growth.
- Global sovereign bonds delivered mostly positive returns amid a volatile rate backdrop, as yields rose sharply into mid-month before pulling back into month-end. Credit markets were constructive, with corporate bonds and securitized assets benefiting from tightening spreads.
- Markets looked through continued Middle East uncertainty, with optimism around a potential Iran deal contributing to a sharp decline in oil prices and a late-month pullback in yields. This shift helped support equities and coincided with tentative signs of broadening beyond the AI leaders that had dominated earlier in the month.
