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Multi-asset chart of the week

Multi Asset chart of the week

13 May 2026 Multi-asset
Week to 15 May 2026

There has been a huge divergence between sector returns since the start of the Iranian war

Stephanie Chan, CFA, Portfolio Manager, said: “Technology sectors, especially semiconductors, have had very strong performance since the start of the war in Iran. Markets continue to be optimistic around the demand for chips and AI infrastructure, as tech companies have reported strong earnings growth so far this earnings season. Gains in tech have helped to buoy the overall market. However, due to energy supply shocks, fears of increased inflation persist: sectors such as consumer staples and materials have underperformed since the start of the war, relative to other sectors.”

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Source: Insight Investment, Bloomberg as at 08 May 2026.

Week to 08 May 2026

Broad contribution to strong earnings results: Positive sales growth and earnings growth across most sectors

Stephanie Chan, CFA, Portfolio Manager, said: “The current earnings season for the S&P 500 is likely to be one of the strongest in history. About 75% of the index has reported so far, and of those companies, 74% have beat EPS expectations. Going into this earnings season, expectations for earnings growth were already the highest expectations since 2021. There is a broad contribution to the strong earnings results: most sectors on aggregate have reported positive sales growth and positive earnings growth. Furthermore, ‘old economy’ sectors such as industrials and materials have also reported double-digit earnings growth, highlighting that the positive results have not just been concentrated in tech.”

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Source: Insight Investment, Bloomberg as at 05 May 2026.

Week to 1 May 2026

Inflation swap rates have retraced to year-to-date highs as odds of Strait of Hormuz reopening fall

Shantanu Tandon, CFA, Portfolio Manager, said: “While the outlook for a resolution to the US–Iran conflict remains uncertain, market expectations of a normalisation in traffic through the Strait of Hormuz have continued to deteriorate. The probability of normalisation of traffic through the Straight of Hormuz by the end of May has now dropped below 40%. With the conflict now in its eighth week, the price of six‑month futures of Brent crude oil has remained elevated, reinforcing upward pressure on inflation”

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Source: Insight Investment, Bloomberg as at 27 April 2026.

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