May's equity rally to continue but bonds may falter

Investors breathed a sigh of relief last month as global equities, led by large US tech companies, continued their post-tariff rally. Companies reported promising earnings that, combined with resilient economic data, reduced recession worries. However, concerns remain for fixed income investors, as US yields face pressure and questions remain over debt sustainability. Amid the uncertainty stateside, investors will be keeping an eye out on the European Central Bank’s interest rate decision, which may see yet another cut. The on-off situation with tariffs is still a risk to investors, and its...