COVID lockdowns point to weaker growth and greater uncertainty in the near term.

US Consumer Sentiment fell further than expected to be at its lowest level since August 2011 and with consumer confidence so low, the risk of recession is rising.

We now expect the global economy to grow by around 3.4% in 2022 and 2023. For Australia, we continue to be optimistic on the economy expecting above-trend growth this year and ongoing strength in the labour market.

Risk assets remained out of favour as concerns over inflation and recession risk continued to dominate.

Growth set to slow to below its long-run average

Another volatile session in markets with an upward surprise in the April US inflation data release adding an extra layer of uncertainty

The RBA met last week and raised rates by 25bps, lifting the cash rate target to 0.35%, and signalled further hikes over coming months

Decline in inflation expectations drive core global bond yields lower with further fall in oil prices helping the move.

The ongoing theme of mounting growth concerns against a backdrop of central bank tightening is continuing to drive market movements.