Moneycontrol Pro Panorama | What did your money manager do in May?

Global markets are undergoing a seismic re-calibration following a preliminary US-Iran peace deal on June 15, which immediately sent crude oil prices plunging to three-month lows and ignited worldwide equity rallies. The landmark agreement, set for formal signing in Switzerland on June 19, primarily focuses on a 60-day ceasefire and the critical reopening of the Strait of Hormuz, a chokepoint responsible for a fifth of global oil and gas trade. This geopolitical breakthrough directly addresses months of energy supply disruptions, providing a much-needed antidote to inflationary pressures that have been surging across economies. May's market dynamics were already signaling a complex environment for money managers, grappling with persistent wholesale inflation, particularly in India where it hit 9.7% driven by fuel costs, and in the US where producer prices rose 6.5% year-over-year. While tech-heavy equities like the S&P 500 and Nasdaq Composite soared on AI enthusiasm and strong earnings, the broader market faced headwinds from elevated energy prices and hawkish central bank expectations. Meanwhile, the metals market, specifically copper, saw record prices driven by structural deficits and demand from EVs and AI, even as precious metals like gold and silver experienced notable investment outflows as macroeconomic factors began to overshadow geopolitical safe-haven appeals. Looking ahead, the immediate focus shifts to the June 19 signing of the Memorandum of Understanding and the subsequent 60-day negotiations on Iran's nuclear program, frozen assets, and potential sanctions relief, which could inject billions into Iran's economy. The market will closely monitor the effective reopening of the Strait of Hormuz, which may still face delays due to mine-clearing operations and lingering skepticism over the deal's long-term stability given past false starts. Investors are advised to maintain tempered optimism, focusing on resilient earnings and strategic portfolio adjustments, as the interplay between global peace, energy markets, and inflation continues to shape the economic landscape.