Last week’s key market movers:
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Strong US jobs data boosted risk sentiment, reinforcing the view that the US economy remains resilient despite geopolitical stress and higher energy prices;
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Better-than-expected corporate results continued to support the US markets despite macro/geopolitical noise;
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AI spending remained the dominant equity theme: investors rewarded companies showing real monetisation;
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Middle East tensions and energy volatility continued driving inflation expectations and sector rotation;
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Markets reduced expectations for near-term rate cuts amid sticky inflation and higher oil prices.
Looking ahead:
- Iran military conflict: Remains the key topic beyond, but a lack of satisfactory peace agreement will likely persist for another week;
- Trump-Xi meeting (14-15 May): A constructive outcome could support risk assets, especially Asian equities, cyclicals, airlines, travel, selected China/HK names and AI supply-chain stocks. A poor outcome could keep oil elevated, support the USD and gold, and pressure risk sentiment.