Market Reviw May : Dawn or Dust ?

Dawn or Dust ?

Are we at dawn or dusk? The light is dim in markets that vacillated between optimism and
pessimism throughout May. The G7, the developments in Ukraine, the debt ceiling in the US, none of them bring clarity on the direction to take. And all asset classes are performing very differently.

Equity markets are generally positive but the US and China are performing negatively. On the bond side it is similar. Currency movements (EUR down, USD up) explain part of the phenomenon. Interest rates have been forming a consolidation channel for months now.

Real estate has been rising to the level of bonds since the beginning of the year. Finally, commodities are losing ground in a market that is focusing its concerns on the coming recession.

The risk indicator has risen slightly on all components.

MAIN performances

XO Risk Aversion Index - Composite 250D

XO Risk Aversion Index - Components