Monthly round-up - May 2025 – a merry month of May except for US Treasuries

Stock market sayings are made to be refuted: one should not sell in May, nor in Europe (+4% for the Stoxx 600, over 6% growth for the DAX, the Footsie MIB, and the IBEX35) nor in the US (+6% for the S&P500 and +10% for the Nasdaq). Volatility has receded but the US dollar remains in convalescent mode and has not restrengthened against the euro. The month was less favourable for the bond markets: heightened fears regarding the US budget situation weighed on US Treasuries, leading to a moderate contagion in Europe, where public finances in France are not reassuring either. Whilst the saga of US trade tariffs, far from its conclusion, remains a persistent threat, we remain positive about European and US equities.