Politics played a crucial role in shaping investor sentiment both globally and domestically in May. Investors’ reactions to economic data releases and monetary policy decisions were relatively muted. Behind the political filibuster in Washington, there were both positive and negative economic developments in developed markets. On the domestic front, tensions escalated between the US government and South Africa over the docking and alleged loading of weapons onto a Russian ship, Lady R, by South Africa in December 2022. The US argued that this action contradicted South Africa’s neutral stance on the Ukraine-Russia war. Consequently, the South African rand experienced a significant decline, reaching its weakest level ever against the dollar and euro. Bonds were also sold off as foreign investors withdrew from the local capital markets.