April market update – equity markets sprung back in positive fashion

Chief Investment Officer Chris Godding and Senior Research Analyst Louie French give their commentary on what happened in the markets and global economies over the month of April 2018.

After a volatile first quarter of 2018, April saw equity markets spring back in a positive fashion, as concerns over a trade war between China and the US abated, global growth data stabilised and the US earnings season got off to a solid start.

What happened in the markets?

• In equity markets, UK equities topped the performance charts, supported by a flurry of M&A activity and a weaker end to the month for sterling, linked to dovish comments from Mark Carney and disappointing macroeconomic data
• Conversely, US equities were amongst the laggards in April, as the US dollar strengthened and Treasury yields passed 3% for the first time since 2014
• The strength of the US dollar was also a headwind for emerging markets and precious metal prices, but it did not stop rising commodity prices elsewhere, with aluminium and oil prices notably higher on geopolitical tensions

Read our market commentary

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