Chapters
Global equities
Global equities staged a strong rebound in May, buoyed by easing trade tensions and firm US economic data. The S&P 500 rallied sharply, reflecting renewed investor confidence and improving sentiment toward risk assets. The FTSE 100 also posted solid gains, supported by resilient corporate earnings and a firmer macro backdrop.
While equities benefitted from a stronger tone overall, central banks signalled caution, and markets dialled back expectations for rate cuts, particularly in the US and UK, as inflation concerns persisted. The rally was not without pause: a late-month downgrade of the US sovereign credit rating revived worries over fiscal sustainability, slightly tempering optimism. Still, market conditions were notably more constructive than in April, with investors selectively rotating into cyclical and growth-sensitive sectors. Emerging market equities also gained, supported by improving fund flows and recovering commodity prices, particularly in energy and industrial metals.
| Indices (total return in local currency) | |
|---|---|
| S&P 500 | 6.3% |
| Nasdaq Composite | 9.6% |
| MSCI ACWI | 5.8% |
| Nikkei 225 | 5.3% |
| EuroStoxx 600 | 4.0% |
| FTSE 100 | 3.8% |
| Hang Seng Index | 5.9% |
| SSE Composite | 2.1% |
Source: Bloomberg as at 30 May 2025.
