Monthly markets review - May 2016

A look back at markets in May 2016 when stronger US macroeconomic data fuelled expectations of a summer rate hike from the Federal Reserve.

6 June 2016

Market Views


  • Equities and most bond markets gained in May as investors continued to speculate about the timing of the next US interest rate rise. Oil prices gained with Brent rising to $50 per barrel during the month.
  • US equities advanced against a backdrop of improving macroeconomic data. This included an acceleration in inflation which helped fuel expectations of a summer rate rise, in turn supporting a dollar rally.
  • Eurozone equities posted positive returns, helped by a weaker euro. Receding Brexit worries supported gains for UK equities.
  • Japanese equities gained ground and the yen weakened. The debate over the next planned rise in the consumption tax continued, although economic data was largely positive.
  • Emerging markets posted negative returns. Brazil and Turkey were key laggards, while China outperformed despite some disappointing macroeconomic data and concerns about capital outflows.
  • Treasuries were the only major sovereign bonds to see rising yields in May. Investment grade credit broadly underperformed government bonds.

Read the full report

Schroders Monthly Markets Review - May 2016 5 pages | 157 kb



  • Market Reviews Schroders

Important Information: The views and opinions contained herein are those of Schroders’ Investment team, and may not necessarily represent views expressed or reflected in other Schroders communications, strategies or funds. This material is intended to be for information purposes only and is not intended as promotional material in any respect. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. It is not intended to provide and should not be relied on for accounting, legal or tax advice, or investment recommendations. Reliance should not be placed on the views and information in this document when taking individual investment and/or strategic decisions. Past performance is not a reliable indicator of future results. The value of an investment can go down as well as up and is not guaranteed. All investments involve risks including the risk of possible loss of principal. Information herein is believed to be reliable but Schroders does not warrant its completeness or accuracy. Some information quoted was obtained from external sources we consider to be reliable. No responsibility can be accepted for errors of fact obtained from third parties, and this data may change with market conditions. This does not exclude any duty or liability that Schroders has to its customers under any regulatory system. Regions/ sectors shown for illustrative purposes only and should not be viewed as a recommendation to buy/sell. The opinions in this material include some forecasted views. We believe we are basing our expectations and beliefs on reasonable assumptions within the bounds of what we currently know. However, there is no guarantee than any forecasts or opinions will be realised. These views and opinions may change.  UK: Schroder Investment Management Limited, 31 Gresham Street, London, EC2V 7QA, is authorised and regulated by the Financial Conduct Authority. For your security, communications may be taped or monitored. Further information about Schroders can be found at US: Schroder Investment Management North America Inc. is an indirect wholly owned subsidiary of Schroders plc, a SEC registered investment adviser and is registered in Canada in the capacity of Portfolio Manager with the Securities Commission in Alberta, British Columbia, Manitoba, Nova Scotia, Ontario, Quebec and Saskatchewan providing asset management products and services to clients in Canada. 875 Third Avenue, New York, NY, 10022, (212) 641-3800.