The macroeconomic environment remained favorable for emerging markets (EM), with resilient US growth and Chinese policy support boosting risk sentiment. Lower US Treasury rates increased appetite for risk assets. In China, economic activity was supported by new measures, including aid for the property sector. The Israel-Hamas war in the Middle East remains a contained risk. EM central banks faced mixed challenges due to delayed rate cuts from developed markets, particularly the US Federal Reserve. May was politically busy, with elections in the Dominican Republic, South Africa, Mexico, and India, bringing surprises like the ANC losing its majority in South Africa and Claudia Sheinbaum's victory in Mexico.