News & Insights

May 2025 – Market Update

By James Timpson

7 May 2025

Investment Market Commentary

Please
Allow 'Marketing' cookies
to watch this video.

Global equity markets were deeply unsettled by the sweeping trade tariffs unveiled by President Donald Trump on ‘Liberation Day’. In the first week of April, the MSCI World index, which tracks global equities, tumbled nearly 10% as investors feared that the newly imposed tariffs would result in a global recession.

The VIX index, which measures the implied volatility of the US equity market, reached its highest level since the Covid crash in 2020. However, the mood brightened a week later when Trump decided to delay most of the tariffs for 90 days. As a result, the S&P 500 index, which tracks US stocks, saw its biggest one-day gain since 2008.

Although uncertainty remains – particularly in China where the trade war has been especially rife – the easing off from Trump has calmed investors to the extent that the FTSE 100 has just achieved a record winning streak. The return on the index has been positive every day since 10th April, resulting in a record streak of 16 consecutive green days.

Source: Bloomsberg and Courtiers. Chart shows daily price returns in GBP from 31/03/2025 to 06/05/2025. Past performance is not a guide to future returns.

Full round-up of April market performance

In the UK, the FTSE 100 index declined -0.66% while medium and smaller companies, measured by the FTSE 250 ex IT index and the FTSE Small Cap ex IT index respectively, gained 3.67% and 1.92%. In the US, the S&P 500 USD index fell 0.68% while in Europe the Eurostoxx 50 EUR index dropped 1.07%. Japanese stocks measured by the Topix JPY index rose 0.33%.

Emerging markets returns were mixed, with the MSCI Emerging Markets index returning -0.15% in local currency terms. Latin American equities, measured by the MSCI Latin America local currency index, surged 5.14% and Indian stocks measured by the Nifty 50 INR index climbed 3.46% but Chinese stocks measured by the MSCI China CNY index slumped 4.51%.

In the fixed income market, UK government bonds, measured by the FTSE Gilts All Stocks index, gained 1.70% with long-dated (over 15 years to maturity) gilts rising 1.80%. Sterling denominated corporate bonds, measured by the Markit iBoxx Sterling Corporates index, gathered 1.35%. In the high yield market, the ICE Bank of America Sterling High Yield index picked up 0.56%.

In the commodities market, the S&P GSCI USD index, which consists of a basket of commodities including oil, metals and agricultural items, shrank 8.43%. Brent crude oil futures tumbled 18.56% during the month. In the precious metals markets, the S&P GSCI Gold and Silver indices returned 5.73% and -5.70% in USD respectively, while in the agricultural markets corn and wheat futures returned 2.19% and -4.47% in USD respectively.

In currency markets, it was a mixed month for the pound as it appreciated 3.18% versus the US dollar and relinquished 1.50% against the euro and 1.57% versus the Japanese yen.

James Timpson CFA Head of Asset Management

Important information

Past performance is not a reliable indicator of future returns. The value of investments, and the income from them, can go down as well as up and is not guaranteed and you may not get back the amount originally invested. Any forecast, projection or target where provided is indicate only and is not guaranteed in any way. Certain types of funds might carry a greater investment risk than other investment funds. Further details of the risks are associated with investing in Courtiers funds can be found in the Key Investor Information Document or Prospectus, copies of which are available on request or at www.courtiers.co.uk.

Disclaimer

This communication is for information purposes only and should not be relied upon in making an investment decision. The views expressed by individuals and the business are based on market conditions at the date of issue and are subject to change without notice. The mention of any stocks or shares should not be taken as recommendation to deal and does not take into account the individual investor’s investment objective or risk profile. Where an investment or security is denominated in a different currency to the investor’s currency of reference, changes in rates of exchange may have an adverse effect on the value, price or income of or from that investment to the investor. Any third party sites, or pages which are linked to the document, have not been reviewed by us and therefore we accept no responsibility for the authors or content of external link or pages. If you are interested in any of Courtiers Asset Management Limited’s range of funds, or require any financial advice, please speak to a financial adviser.

Issued by Courtiers Asset Management Limited, CAM0525067. Courtiers Asset Management Limited is Authorised and Regulated by the Financial Conduct Authority – Register No: 616322. Address: 18 Hart Street, Henley on Thames, Oxfordshire RG9 2AU. Tel: 01491 578368.