Investment Institute
Monthly Market Update

May Global Macro Monthly - Good medicine tastes bitter

  • 24 May 2022 (5 min read)

Key Points

  • Inflation is prevalent across international economies. It appears close to a peak in many economies, but further energy price gains and supply disruptions risk further increases and a slower reversal than previously hoped.
  • In many cases, higher inflation is associated with tight labour markets – often tighter than before the pandemic. An easing here is required to restore price stability.
  • Yet early signs of slowdown are emerging. China’s COVID policy makes it a special case. More generally, interest-rate sensitive sectors like housing, or price sensitive sectors like consumers are starting to soften. But this is not universal and some regions still see solid growth.
  • This has created a near universal set of conditions for tighter monetary policy with most central banks tightening or continuing to tighten policy. The BoJ and PBoC are amongst the largest exceptions.
  • Yet these are difficult conditions for markets. Central banks desires for now appears geared to yet further tightening of financial conditions.
Full slide deck of our May Global Monthly Strategy
Download the full deck (2.36 MB)

Related Articles

Monthly Market Update

May Op-Ed - Peak hawkishness reached? Give it a bit more time

  • by Gilles Moëc
  • 24 May 2022 (7 min read)
Monthly Market Update

April Op-Ed - Sweet spot for the hawks

  • by Chris Iggo , Gilles Moëc
  • 27 April 2022 (7 min read)
Monthly Market Update

April Global Macro Monthly - Macron encore

  • by AXA Investment Managers
  • 27 April 2022 (7 min read)

    Disclaimer

    This document is for informational purposes only and does not constitute investment research or financial analysis relating to transactions in financial instruments as per MIF Directive (2014/65/EU), nor does it constitute on the part of AXA Investment Managers or its affiliated companies an offer to buy or sell any investments, products or services, and should not be considered as solicitation or investment, legal or tax advice, a recommendation for an investment strategy or a personalized recommendation to buy or sell securities.

    It has been established on the basis of data, projections, forecasts, anticipations and hypothesis which are subjective. Its analysis and conclusions are the expression of an opinion, based on available data at a specific date.

    All information in this document is established on data made public by official providers of economic and market statistics. AXA Investment Managers disclaims any and all liability relating to a decision based on or for reliance on this document. All exhibits included in this document, unless stated otherwise, are as of the publication date of this document.

    Furthermore, due to the subjective nature of these opinions and analysis, these data, projections, forecasts, anticipations, hypothesis, etc. are not necessary used or followed by AXA IM’s portfolio management teams or its affiliates, who may act based on their own opinions. Any reproduction of this information, in whole or in part is, unless otherwise authorised by AXA IM, prohibited.