USA

Year to Date (YTD)

Commentary: The U.S. economy keeps showing signs of cooling while remaining relatively resilient: consumer spending continued to underpin activity, but tighter financial conditions and elevated energy costs weighed on sentiment. The labour market added jobs in April at a more moderate pace indicating a "low-hire" environment whilst the unemployment rate stayed at 4.3%. Inflation climbed more than expected and at 3.8% will be a headache for upcoming new FED Chair Kevin Warsh. Increasing energy prices largely contributed to this rise, as the Iran conflict spills over to the third month with negotiations still going on. Equity markets reached multiple all-time highs despite heightened volatility, as oil price swings and geopolitical tensions influenced investor sentiment. The S&P 500 is now up 8.75% YTD whilst the NASDAQ is up 13.60%.

Europe & UK

Year to Date (YTD)

Commentary: The euro area economy remained largely subdued, with modest growth in Germany, France and Italy while Spain continued to outperform, as euro area GDP rose 0.1% in Q1 on the flash estimate; activity was supported mainly by services and household spending while manufacturing stayed weak amid soft external demand and supply frictions. Annual HICP inflation jumped to 3.0% in April, driven largleyby a sharp rise in energy prices. Energy inflation was at around 11%, with services and food also maintaining their upward trend. The ECB left its key rates unchanged at the April meeting, keeping the deposit rate at 2% and stressing elevated uncertainty. Equity markets saw increased volatility remained largely flat, with the Eurostoxx up just by 2.3% YTD. 

Malta

Year to Date (YTD)

Commentary: Malta’s economic outlook remained positive, with growth expectations for 2026 still in the mid‑to‑high single digits range and the sovereign credit rating affirmed at A (high) with a stable outlook by DBRS in April. Robust domestic demand and strong services exports, notably tourism continued to record double‑digit year‑on‑year gains. The general government deficit is estimated to have narrowed, and public debt to GDP remained constant around the 47% mark. Inflation increased slightly but the labour market remained strong with a very low unemployment rate. Financial markets were steady as companies reported their relevant Q1 results – Bank of Valletta and HSBC saw declines in their quarterly earnings whilst APS Bank reported record quarterly profit. The MALTEX is up 2.3% YTD.