Wild Swings Of May Not Necessarily The End Of Market Turmoil: Report

Sell in May? They certainly did, but rather than go away as the old stock market adage suggests, traders returned to aggressively buy the dip.

Sell in May? They certainly did, but rather than go away as the old stock market adage suggests, traders returned to aggressively buy the dip, causing some of the wildest monthly swings in recent times.

There was plenty of selling in the first half of the month across asset classes, driven by aggressive central banks, inflation and China's lockdown policies. But markets subsequently started dialling back expectations of U.S. interest rate rises.

Now worries over rising prices are back at the forefront; on Tuesday, oil climbed above $123 per barrel and euro zone data showed record 8.1% inflation in May.

All that means "there will be a large degree of scepticism in the market that we have seen the bottom yet", said Stuart Cole, chief macro strategist at Equiti Capital.