News & Views

Global markets advanced in May, supported by renewed strength in technology and AI-related sectors, with semiconductor-heavy markets such as Korea, Taiwan and the Netherlands leading gains. However, the backdrop became more complex as inflation pressures re-emerged, driven largely by higher energy costs linked to Middle East tensions. Central banks remained cautious, reinforcing a higher-for-longer stance, while bond markets came under pressure from rising yields.

FGlobal markets came under significant pressure in March as geopolitical tensions in the Middle East triggered a sharp surge in energy prices, reigniting inflation concerns across major economies. Central banks in the UK, US and eurozone responded by holding interest rates steady, balancing persistent inflation against growing economic uncertainty. Investor sentiment deteriorated, driving a broad risk-off move in equities, while capital flowed into safer assets such as money

Chancellor Rachel Reeves delivered the 2025 Budget, stating “We are rebuilding our economy.” The plan raises £26bn by 2029/30, expands fiscal headroom, and keeps Labour’s tax pledges. Forecasts show modest growth and falling inflation. Measures include frozen tax thresholds, ISA changes, higher wages, business incentives, housing investment, NHS upgrades, and new duties on vehicles, tobacco and gaming.