Articles

Welcome to our May edition of Market Perspectives, the monthly investment strategy update from Barclays Private Bank. 

In the following chapters we look at how the effective closure of the Strait of Hormuz – and a four-year high in the oil price – is changing the outlook for financial markets, economies and interest rates. 

In equities, market volatility remains elevated with fast-changing sentiment driven by conflicting signals on peace prospects in the Middle East. Despite that, we look at why first-quarter earnings have been so resilient – powered by the influence of artificial intelligence (AI)-related names – as selectivity and diversification come to the fore.  

Bond markets find themselves in an unusual place: rarely have yields been high and the yield curve upward sloping at the same time. Despite inflation pressure worsening, this relationship largely creates a positive environment for fixed income investors focused on income and roll returns. 

And beyond our in-depth asset class and financial market analysis, we discuss how fears over energy security might affect the speed of transition to renewable power, and whether shortages in helium supplies add another risk to the AI trade. 

As always, we hope you enjoy the articles.