Global stockmarkets ended the week broadly unchanged, although oil prices slid to the lowest levels this year.

The US raised interest rates once more, and global stockmarkets retreated slightly as central banks in the US, UK and Canada delivered hawkish comments.

In general, global stockmarkets shrugged-off the UK general election result indicating significant uncertainty had already been priced into markets due to the forthcoming Brexit negotiations. Sterling was the main casualty. The OECD revised its prediction for global growth this year to 3.5%, up from 3.3% in March, as increased trade and investment flows offset a weaker outlook in the US. This would be the global economy’s best performance since 2011.

Global equities and bonds rallied over the three-week period as a ‘goldilocks’ scenario of steady, but unspectacular, growth and subdued inflation was seen to delay any move to withdraw central bank support for markets.

The US and China sign a trade agreement that opens the Chinese market to US credit rating agencies and credit card companies. Under the deal, China will also lift its ban on US beef imports and accept US shipments of liquefied natural gas.

Stronger-than-expected US economic data raised expectations that the Fed would increase rates again in June. Commodity prices weakened as Chinese money market rates hit a two-year high.

Bonds fared well amid rising risk aversion ahead of the first round of the French presidential elections and rising geopolitical tensions in Asia and the Middle East. In contrast, European equity markets weakened. The IMF said it expected the world economy to grow faster than it previously thought, thanks to increased trade, investment and manufacturing. It revised its projections for global growth in 2017 up to 3.5%, from its previous estimate of 3.4%. While small, this is the first time in six years the IMF has revised up previous expectations for short-term global growth.

Tensions increased between Russia and the US after the latter launched missiles at a Syrian airbase following a gas attack on Syrian civilians. President Trump also sent a US aircraft carrier to the waters off South Korea after North Korea launched another missile test. After the lone wolf terror attack in Westminster, Sweden also suffered a fatal attack when a lorry drove into a department store.

Global M&A activity rose 7% to $726.5bn in the first quarter compared to a year ago, driven by strong US demand for European companies. In contrast, overseas bids for US companies fell to their lowest level since the start of 2014.

Global stockmarkets lost ground as the Trump rally faded amid concerns over President Trump’s ability to action his election pledges.