The Risk Appetite Index improved from -31% in April to -19% in May meaning that investor risk appetite remains heavily risk averse but to the smallest degree since January.

• Concerns about US political and macroeconomic environments dominate, alongside worries over valuations, fiscal policy, and the global economy.
• Worries grow over equity fundamentals amid lower earnings expectations.
• Sector preferences remain defensive and energy sector sentiment hits its lowest since 2020, but tech interest rallies.

• The May survey indicates that investors have revised down their expectations of next quarter’s earnings to an extent not seen since late 2022.