Summary: The global financial situation grows increasingly concerning, which is evident in this month’s financial performance as equities, bonds and commodities all end in minus.
Global equities fell more than six percent. This could indicate that the events that have dominated 2022, i.e., the Russian invasion of Ukraine, supply chain issues, commodity and energy shortages, which among other things have driven up inflation to numbers we haven’t seen in several decades are still prevalent.
Within the equity sectors, there are big differences. Most notably, while the energy sector was the best performer in May, it is now the second-worst performer. The fall can probably be attributed to a very sharp increase previously in the year and the increased fear of recession, especially in the US, which could lead to less energy consumption. The sector is still the best performer for the year.
Sources: Bloomberg & Saxo Group
Global equities are measured using the MSCI World Index. Equity regions are measured using the S&P 500 (US) and the MSCI indices Europe, AC Asia Pacific and EM respectively. Equity sectors are measured using the MSCI World/[Sector] indices, e.g. MSCI World/Energy. Bonds are measured using the the USD hedged Bloomberg Aggregate Total Return indices for total, sovereign and corporate respectively. Global Commodities are measured using the Bloomberg Commodity Index. Oil is measured using the next consecutive month’s WTI Crude oil futures contract (Generic 1st 'CL' Future). Gold is measured using the Gold spot dollar price per Ounce. The US Dollar currency spot is measured using the Dollar Index Spot, measuring it against a weighted basket of the following currencies: EUR, JPY, GBP, CAD, SEK and CHF. Unless otherwise specified, figures are in local currencies.
*Data is month-to-date figures for June 2022 from 30 June, 09.30 CEST.