ETF Performance Report May 2024

Overall global equities started the month in the positive territory amid reinforced expectations of the Federal Reserve trimming its rate. This came after US reported a cooling labour market, a slight increase in its unemployment rate and a weaker inflation reading. Expansion in the global equities continued in the mid-month with growth stemming from resilient corporate earnings in US equities and China’s broad rescue package to prop up its beleaguered property market. 

Growth contracted towards end of the month as US Federal Reserve indicated that rate adjustment might not happen soon. Expansion was further dampened by escalated trade war tensions between the US and China as US planned to sharply increase its tariffs on about USD18 billion worth of China imports targeting key economic sectors such as electric vehicles (EV) and semiconductors. US Treasury Yields rose towards end of the month as investors dialled back expectation on rate cuts.