Please find below our Investment Market Update as at 2nd June 2023.
What did May bring?
Yes, you guessed it, more uncertainty but there are opportunities too.
There were four main factors at play:
- US debt ceiling crisis
- US earnings season
- Stickier inflation
- Interest rates will likely be higher for longer.
We’ll cover off the above and then take a look at some of the other dynamics impacting investor sentiment:
- The surge in interest in AI
- Talking about bubbles?
- Why the bond markets still look shaky
- Global property is more resilient than expected
- It’s different in China!
- US stocks are climbing
- European inflation falls more than expected.
US debt ceiling crisis
The debt ceiling uncertainty has finally been brought to a conclusion. A default would have had dire consequences for the US economy and the uncertainty would have played out in bond markets, with yields rising and value falling.
As had been expected, the Senate approved the legislation to suspend the US debt ceiling through to the 2024 election. The 63-36 vote was carried by moderates in both parties – many of whom put aside their misgivings about parts of the deal (Bloomberg).
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Please Note: This communication should not be read as giving specific advice regarding your personal circumstances. This would only be given following detailed assessment of your individual needs. The value of investments may fall as well as rise; you may get back less than invested. Past performance is not necessarily a guide to future returns.