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Market Views April/May 2023

Markets calmed through April as fears over the solvency of the banking sector subsided. Equity markets rallied throughout most of
April as investors turned their focus towards the latest earnings reports. Whilst company earnings have generally held up, attention
has moved to companies exposed to the AI race which have outperformed the broader market. As we reach the end of the tightening
cycle, both investors and central banks will keep their eye on the effect of the ‘long and variable lags’ of monetary policy.

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