Inflation concerns, rising input costs and a tight labor market led to a choppy month of trading. Equity markets rallied into month’s end to close mixed to flat for May. Investors’ concerns around inflation running hot have been seen in all aspects of the market. Equities, treasuries, commodities, currency and even crypto have seen heightened bouts of volatility. Cyclical stocks were supported by strong economic data. Brent Oil has increased further from $ 67.25 to $ 69.32$ per barrel. Capesize-Rates have fallen from 40k/day to 26k/day at month end. LNGC spot freight rates were rangebound at elevated levels around $60k/day. The SCFI Containerized Index (Shanghai Containerized Index) has increased by another 13%. Shipping stocks have led a strong transportation segment. Within energy, the oil and gas segment was positive whereas renewables have performed negatively. Individual short and index future short positions have in aggregate contributed positively.
For more information you can find our latest Fact Sheet – May 2021.
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