April 2017

• Global markets advanced in April as political risks in Europe eased and economic growth remained synchronised across major economies.
• European equities rallied strongly following the first round of the French presidential election, which reduced fears of anti-EU political outcomes.
• U.S. equities remained supported by solid corporate earnings and resilient economic data.
• Emerging markets continued attracting investor inflows amid improving trade conditions and a weaker U.S. dollar.
• Commodity prices were mixed, with oil weakening modestly while industrial metals remained firm.
• Volatility stayed relatively low across global markets despite geopolitical tensions involving North Korea and Syria.

Asia (ex. Japan)

Asian markets outside Japan delivered solid gains in April as improving global trade conditions and stable Chinese growth supported investor sentiment. Chinese economic data exceeded expectations, particularly within industrial production and exports, reinforcing confidence in regional demand.

South Korea and Taiwan benefited from continued strength in technology exports and semiconductor demand, while India remained supported by domestic consumption and ongoing reform momentum. Geopolitical tensions involving North Korea created brief periods of volatility but did not significantly disrupt broader market performance.

Europe

European equities rallied strongly in April after the first round of the French presidential election reduced concerns surrounding anti-European Union political movements. Investor confidence improved significantly as centrist candidate Emmanuel Macron emerged as the frontrunner.

Economic indicators across the eurozone continued strengthening, particularly within manufacturing and business confidence surveys. The European Central Bank maintained its accommodative policy stance, while the euro strengthened modestly against major currencies.

United States

U.S. equities advanced during April as corporate earnings exceeded expectations and economic fundamentals remained supportive. Employment growth, consumer confidence and manufacturing activity all pointed toward continued expansion.

Investors also responded positively to expectations of tax reform and infrastructure spending proposals, though political uncertainty occasionally created short-term volatility. Treasury yields remained relatively stable as inflation pressures stayed moderate.

United Kingdom

UK equities posted modest gains in April despite ongoing Brexit-related uncertainty. Sterling strengthened after the announcement of a snap general election scheduled for June, leading to some pressure on multinational exporters.

Domestic economic data softened slightly as rising inflation weighed on consumer spending. The Bank of England maintained its cautious policy stance while monitoring inflation and Brexit developments closely.

Japan

Japanese equities advanced as global trade conditions improved and export demand remained strong. A relatively stable yen supported corporate earnings expectations, particularly among manufacturing and technology companies.

The Bank of Japan maintained its highly accommodative monetary policy framework and reiterated its commitment to achieving sustainable inflation. Investor confidence remained constructive amid improving global growth conditions.

Emerging Markets

Emerging markets performed strongly in April as improving global growth and weaker dollar conditions supported capital inflows. Commodity-exporting nations benefited from stable industrial demand, while Asian economies continued outperforming due to strong technology exports.

China remained central to investor sentiment, with stable economic growth helping support broader emerging market confidence. Latin American markets also improved as commodity prices stabilised and political risks eased modestly.

Commodities

Commodity markets were mixed in April. Oil prices weakened modestly as investors became concerned about rising U.S. shale production and persistent global supply levels despite OPEC production cuts.

Industrial metals remained firm due to strong Chinese demand and improving manufacturing activity globally. Gold prices rose slightly as geopolitical tensions increased safe-haven demand during parts of the month.