May market performance: Back in black (or blue) May market performance: Back in black (or blue) May market performance: Back in black (or blue)

May market performance: Back in black (or blue)

Market Rewind
Søren Otto Simonsen

Senior Investment Editor

Global equities made up for April’s negative performance and then some in May. In an earnings-heavy month, global equities climbed 4.2% in May against a fall in April of 3.9%. A broad-based move, which comes on the back of a general easing of financial conditions as central banks entertain rate cuts and of a pretty good earnings season.

The US leads the pack in terms of regional performance with an increase of 4.8% for the month. Here, softer inflation figures coupled with strong earnings (e.g. by chipmaker Nvidia, which is up more than 20% for the month) sent the market up.

Europe had a strong month as well, climbing 2.5%, as the region is set for easing financial conditions based on the expected rate cut by the ECB in the first week of June.

Asia and emerging markets returned 1.5% and 0.3% respectively. Negative key figures in China pulled down both regions, while the surge in Japanese equities held the Asian index up, but not the emerging markets one (as Japan isn’t part of the EM index).

Information technology is the best-performing sector in May returning 8.5%, as some of its constituents (and some of the biggest companies out there) like Nvidia, Microsoft and Apple posted positive returns. This move is, among other things, based on the continuous focus on AI and other tech-related industries.

Utilities and communication services also posted strong returns of more than 6%, while energy and consumer discretionary were the worst performers, closing it out basically flat for the month.

Bond returns were – on an aggregate level – slightly below 1%, with corporate bonds performing better than sovereigns. Bonds continue to move with inflation expectations and interest rates.
Check out the rest of this month’s performance figures here:

Sources: Bloomberg and Saxo

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 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 (West Texas Intermediate) 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 (Japanese yen), GBP, CAD, SEK, and CHF. Unless otherwise specified, figures are in local currencies.

Disclaimer

The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please read our disclaimers:
- Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
- Full disclaimer (https://www.home.saxo/legal/disclaimer/saxo-disclaimer)
- Full disclaimer (https://www.home.saxo/en-mena/legal/disclaimer/saxo-disclaimer)


Boulevard Plaza, Tower 1, 30th floor, office 3002
Downtown, P.O. Box 33641 Dubai, UAE

Contact Saxo

Select region

UAE
UAE

Trade responsibly
All trading carries risk. Read more. To help you understand the risks involved we have put together a series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. Read more

Saxo Bank A/S is licensed by the Danish Financial Supervisory Authority and operates in the UAE under a representative office license issued by the Central bank of the UAE.

The content and material made available on this website and the linked sites are provided by Saxo Bank A/S. It is the sole responsibility of the recipient to ascertain the terms of and comply with any local laws or regulation to which they are subject.

The UAE Representative Office of Saxo Bank A/S markets the Saxo Bank A/S trading platform and the products offered by Saxo Bank A/S.