Insights

In May, trade headlines once again dominated financial markets – albeit in a relatively positive light as signs of simmering tensions were met with a revival in risk appetite.

In April, financial markets were whiplashed by a flurry of headlines on the trade front. While “Liberation Day” was met with sweeping tariff announcements, the trade war between the United States and China escalated with tit-for-tat levies.

The first quarter ended on a softer note, with President Trump’s disruptive trade proposals and mounting stagflation fears driving investors out of risky assets.

Risk appetite deteriorated and financial markets were mainly in risk-off mode in February, with mounting risks of a trade war injecting some volatility into the marketplace and weighing on investor sentiment.