Uncertainty and the correlation conundrum

While energy prices and government bond yields rose this week, the impact on equities was different across regions, and credit stress was contained. The situation so far is one of uncertainty rather than a downturn.

The “Magnificent Seven” begin to split as two tech giants break away from the pack.

Correlation is one of the most widely used statistical measures in modern finance. But investors looking for genuine portfolio diversification may wish to use it alongside other metrics as they look to mitigate risk.

Vital industries for UK growth like steel or cement are also energy intensive, and their decarbonisation is essential. We convened a roundtable of experts to discuss barriers and solutions to unlocking low-carbon investment opportunities.

The current macro environment poses significant challenges for investors. Our AIMS Target Return team explain why a less conventional approach can help maintain portfolio resilience and unlock return opportunities.

Markets continued to digest the endless news flow on global tariffs, while Nvidia provided further indications of the resilience of company earnings in the first quarter of the year.

US fiscal concerns took centre stage this week, as investors reassessed the long-term sustainability of government debt.  

This week, equity markets have been riding a wave of optimism on the back of positive news flow, with the US stock market, as measured by the S&P 500, remarkably erasing its losses for the year.

Risk assets bounced back this week following increased hopes of a further de-escalation in the trade war and a positive earnings cycle.

Risk assets bounced back this week following increased hopes of a further de-escalation in the trade war and an easing in fears surrounding the independence of the US Federal Reserve.

Welcome to Bitesize, our new monthly data-viz series where we unpack market developments in a single chart (or two), giving you sharp insights in under five minutes. This month, we look at the impact of President Trump’s latest tariffs – and how diversification can help investors stay resilient when markets wobble.

Following recent market turmoil, which saw the VIX (volatility) index reach one of its highest points this century, we saw a stabilisation in risk assets this week.