A month full of events: new tariffs, surprising market rallies, a historic US credit rating downgrade – and right in the middle, investors navigating between uncertainty and opportunity. The current market overview from Tellco Bank provides insights into the complex dynamics that shaped the financial markets in May 2025.
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European Equities Defy the Storm
Who would have thought that European indices would respond so robustly to the protectionist rhetoric from Washington? While the US grapples with the consequences of its tariff policy, Europe’s markets are clearly on the rise. The DAX reaches new heights, the SPI performs well – despite many analysts having expected a mixed corporate outlook.
The earnings season confirms this tension: While in the US, at least 75% of S&P 500 companies exceeded expectations, the outlook across many sectors remains subdued. In Europe, the proportion is significantly lower – yet a different narrative is taking hold in the markets: relative strength, especially in comparison to the US. The reasons lie in currency effects, political stability – and perhaps also in a certain aversion to the uncertainty across the Atlantic.
Debt, Sentiment, Standstill: The Fragile Foundation of the US
Moody’s has sent a clear signal: For the first time in over a century, the US government has lost its top credit rating. Rising deficits, lack of reforms, and increasing interest costs left the rating agency no other choice. Public scepticism is also growing. Consumer sentiment has fallen to its lowest level since June 2022, especially among Republican voters – precisely those who are most aligned with the current US trade policy.
Meanwhile, the Fed remains silent. The base rate is once again left unchanged, but the reasoning sounds defensive: uncertainty, global conflicts, a wait-and-see approach. In contrast, Switzerland is showing significantly more movement. Here, inflation fell to zero in April – supported by a strong franc, which makes imports cheaper. The SNB reacted swiftly and lowered the base rate to 0.25%, with the prospect of further steps to follow.
Gold Shines – and Raises New Expectations
In times like these, it is hardly surprising that gold remains in the spotlight. Not only does the price remain stable, but it continues to rise thanks to high ETF inflows and massive purchases by central banks. Particularly interesting: gold mining companies are also benefiting significantly, with rising margins and robust balance sheets.
But gold isn’t everything. The market overview already offers a preview of alternative investments for the coming months. Those thinking about hedge funds, private markets or other non-traditional assets may soon find new impulses. Especially in times of structural uncertainty, more and more investors are seeking long-term resilient solutions – beyond the traditional markets.
Whether monetary policy, geopolitical shocks or new investment opportunities: the market overview provides well-founded analysis and clear figures. Learn more and read the full market overview now.