Fintuity Market Review – May 2025
May saw global markets extend their recovery, building on the lows of April as investor confidence improved and global trade tensions eased. Encouraging developments in trade discussions between major economies and a temporary suspension of planned tariff increases helped reduce fears of an imminent recession, fuelling gains across risk assets.
For those seeking to find a financial adviser or consult a certified adviser, understanding how markets behave during geopolitical shifts is critical to long-term financial success. Book a meeting with an adviser today to discuss how these developments may impact your pension, investment, or protection strategy.
Equities: Rebound Gains Momentum
Developed market equities posted strong gains, rising 6.0% during the month. US equities led the charge, particularly growth stocks, which advanced by 8.7%. Small-cap stocks also rebounded (+5.9%) as optimism grew that policy changes might benefit smaller businesses.
Emerging markets performed well in dollar terms, thanks in part to a weaker US dollar. Taiwan and South Korea stood out with gains of 12.5% and 7.8%, respectively.
European equities also posted solid returns, helped by optimism around transatlantic trade and continued fiscal support. The MSCI Europe ex-UK Index rose 4.9%. In contrast, the UK market lagged slightly, with the FTSE All-Share increasing by 4.1%. Defensive sectors like consumer staples and utilities were among the underperformers.
If you’re uncertain about which markets offer the best value, an independent adviser can help build a tailored investment strategy that suits your risk appetite. Book a meeting with an adviser to ensure your portfolio remains on track.
Fixed Income: Mixed Signals
Global bond markets delivered mixed performance, with the Bloomberg Global Aggregate Index falling by 0.4%. Rising concerns about fiscal stability, particularly in the US, caused yields to climb mid-month following a sovereign credit downgrade. While bond prices later recovered, the episode highlights the increased sensitivity of markets to fiscal news.
Sovereign bonds in countries with stronger fiscal foundations fared better than those in more indebted economies, such as the UK, US, and Japan. This divergence underlines the need for a diversified fixed income allocation—a key point your financial adviser should address when constructing your investment plan.
Credit markets, meanwhile, offered a brighter outlook. High-yield bonds outperformed investment grade and sovereign issues, as investors rotated into riskier assets amid improving sentiment. Narrowing credit spreads in both US and European markets were a reflection of stronger investor confidence.
Now more than ever, speaking with a financial advisor who understands the impact of interest rate shifts and inflation on your savings, pension, or income strategy is vital. Book a meeting with an adviser to review your fixed income exposure.
Commodities: Mixed Returns
Commodities lagged in May, with the Bloomberg Commodity Index slipping 0.6%. Gold declined by 0.8% as investor appetite for risk increased. In contrast, industrial metals and energy posted modest gains, with oil prices rebounding toward $63 per barrel.
These trends can affect your broader financial plan, especially if you’re looking for inflation hedges or seeking the best service from an independent adviser with experience in alternative investments. Book a meeting with an adviser to find out if commodities should have a role in your portfolio.
Diversification Remains Key
May marked a significant shift in market sentiment, as easing trade tensions prompted a rally in equities and high-yield credit. However, inflation remains high, and fiscal vulnerabilities continue to cast a shadow over the long-term outlook. As such, the investment environment remains finely balanced.
A well-constructed financial plan should account for these two-sided risks—persistent inflation on one side, and slowing global growth on the other. If you’re working with a financial adviser to plan your future, ensure they are helping you maintain diversification across geographies and asset classes.
For investors looking to review their pensions or protection strategies, working with a certified adviser who understands how global dynamics impact personal finances can make a significant difference.
Whether you’re looking for the top adviser for long-term investment growth or simply need help navigating volatile markets, book a meeting with an adviser today. Our independent advisers offer expert, personalised guidance—putting your financial goals first.
Founded in 2017, Fintuity has fast become one of the only digital Independent Financial Advisers (IFA) in the United Kingdom. Fintuity offers a wide range of financial advisory services including pensions, protection, investments and mortgage advice. The key difference is that as an exclusively digital service, we can offer significant savings and a service that is direct to you and on demand.
