May 2024

• Global markets rebounded in May as inflation data moderated modestly and investor confidence improved regarding potential future interest rate cuts.
• Technology and artificial intelligence-related sectors continued leading global equity market performance.
• Bond yields stabilised following April's sharp increases.
• Economic growth remained resilient across major developed economies despite elevated interest rates.
• Chinese authorities introduced additional support measures aimed at stabilising the property sector.
• Commodity prices delivered mixed performance amid shifting demand expectations and geopolitical developments.

Asia (ex. Japan)

Asian markets outside Japan advanced during May as strong semiconductor demand and improving global risk appetite supported regional technology sectors.

Chinese authorities introduced additional measures aimed at supporting the struggling property sector and domestic demand, helping stabilise sentiment despite ongoing structural growth concerns.

Europe

European equities delivered positive performance during May as easing inflation trends and improving investor expectations regarding future European Central Bank rate cuts supported sentiment.

Corporate earnings remained relatively resilient despite weak manufacturing activity across several economies, while financial and industrial sectors performed steadily.

United States

U.S. equities advanced strongly during May as softer inflation data improved confidence that the Federal Reserve could still begin cutting interest rates later in the year.

Technology and artificial intelligence-related companies continued dominating market performance, with semiconductor and cloud computing firms delivering particularly strong gains.

United Kingdom

UK equities delivered modest gains during May as inflation moderated gradually and expectations increased that the Bank of England could begin easing monetary policy later in 2024.

Domestic economic activity remained relatively subdued overall, though improving financial conditions supported investor sentiment.

Japan

Japanese equities remained strong during May as corporate governance reforms, foreign investor inflows and continued global technology demand supported market performance.

However, yen volatility remained a key focus for investors following suspected intervention efforts by Japanese authorities earlier in the month.

Emerging Markets

Emerging markets performed positively during May as stabilising bond yields and improving global risk sentiment encouraged investor inflows.

Technology-oriented Asian economies continued outperforming due to semiconductor demand and artificial intelligence-related investment trends.

Commodities

Commodity prices delivered mixed performance during May. Oil prices moderated slightly as supply concerns eased somewhat despite ongoing geopolitical tensions.

Industrial metals strengthened due to improving manufacturing sentiment and supply constraints, while gold prices remained elevated following strong gains earlier in the year.