Last month’s recovery in sentiment was sent into reverse in May with investors in the US, developed world and Asia ex-Japan ending last week bearish. Sentiment also weakened in developed Europe, ending in negative levels but not yet bearish. Investors in emerging markets, Japan and China ended the week neutral.
The recovery in sentiment that began in March and peaked during the last week of April is showing signs of weakening. Sentiment in five of the seven markets we track is now back in negative territory, with investors in the US ending the week bearish.
US: Quiet week on the data front with only a few Fed speeches to look out for; Europe: No data but the recent rise in COVID-19 cases will be in focus; APAC: No data this week but news on COVID-19 lockdowns in China will be watched; Globally: The ongoing conflict in Ukraine, and the still fluid COVID-19 situation across Europe and Asia, will continue to dictate investor sentiment.