Global Market Snapshot: Key Market and Economic Observations, May 2017

In the U.S. the first quarter GDP growth fell short of the consensus forecast; however, stocks have remained surprisingly resilient, currently sitting just below all-time highs. Overall, Energy, Financials, and Information Technology have been the primary growth drivers. In Europe, Independent centrist candidate Emmanuel Macron defeated populist/Eurosceptic candidate Marine Le Pen, shifting investors’ focus to improving economic data. In China, the pace of expansion is expected to ease as the government continues to tighten policy and target areas of excess. In Japan, the yen has strengthened throughout 2017, making it difficult for Japanese equities to advance. And in the energy sector, bearish combination keeps oil prices down.