April Market and Economic Update

A weaker sterling helped disguise a more hesitant performance from global equity indices in March for GBP-based investors.

• The US market in particular, wrestling with downward revisions to earnings estimates, ended the month almost 2% lower in US dollar terms.
• In contrast Japanese and Eurozone equity markets continued to respond positively to local quantitative easing programmes and a stronger earnings outlook.
• In bond markets gilts and US Treasuries clawed back some of the previous month’s losses, after Central bankers pushed back expectations of when interest rates might rise.

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