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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.

Markets ended the year on a steady footing as central banks cautiously shifted toward supporting growth amid easing inflation. The UK and US delivered further rate cuts, while the ECB held policy steady as eurozone inflation aligned with target. Market performance was mixed, with strength in banking, fintech and Asian technology offset by weakness in parts of emerging markets. Multi-asset portfolios benefited from diversification, helping to cushion volatility and position in