Politics Dominated the Headlines in May, but S&P Continues Upward Trajectory; Bonds Also Rally
Politics dominated the headlines in May and as news of investigations into U.S. president Donald Trump reached investors, the US stock market saw one of its largest downward moves in the year-to-date. But the two-day 2% drop was offset as stock prices continued their upward trajectory. The S&P 500 registered its third best monthly gain, adding 1.4%, the FTSE 100 rallied 5.0% and European stocks added 3.3% as Eurozone uncertainties due to the French election, which had commenced in April were, were resolved for now with the victory of Emmanuel Macron. Attention then turned to Italy where elevated political risk was attached to internal developments that made it seem increasingly likely that a general election would be held by the autumn.
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