April 2018

• Global markets stabilised in April as strong corporate earnings and resilient economic growth helped offset concerns over trade tensions.
• U.S. equities recovered from earlier volatility, supported by strong technology and financial sector performance.
• European and Japanese markets remained mixed amid currency fluctuations and export-related concerns.
• Emerging markets experienced increased pressure from rising U.S. bond yields and dollar strength.
• Oil prices advanced further due to tightening supply conditions and geopolitical risks.
• Bond yields continued rising as inflation expectations strengthened modestly.

Asia (ex. Japan)

Asian markets outside Japan were mixed during April as investors balanced strong economic growth against escalating trade tensions between the United States and China. Chinese equities weakened modestly as concerns over tariffs affected investor confidence.

Technology-heavy markets such as Taiwan and South Korea experienced increased volatility, while India remained relatively resilient due to stable domestic demand and improving earnings expectations.

Europe

European equities were relatively subdued during April as stronger oil prices and currency movements affected corporate earnings expectations. Export-oriented sectors remained sensitive to trade-related developments globally.

Economic conditions across the eurozone remained supportive overall, though investors became increasingly cautious regarding global trade uncertainty and rising bond yields.

United States

U.S. equities recovered during April as corporate earnings season exceeded expectations and economic growth remained robust. Technology and financial sectors led gains despite ongoing trade policy concerns.

Treasury yields continued rising as inflation expectations strengthened and the Federal Reserve maintained its gradual tightening outlook.

United Kingdom

UK equities were mixed during April as sterling strength weighed on exporters while commodity-related sectors benefited from rising oil prices.

Inflation moderated slightly, though the Bank of England maintained expectations for gradual future tightening amid steady economic growth.

Japan

Japanese equities stabilised during April as global growth remained supportive despite rising trade tensions. Exporters were affected by periodic yen strength, though earnings remained relatively strong.

The Bank of Japan maintained highly accommodative monetary policy settings, helping sustain supportive financial conditions.

Emerging Markets

Emerging markets came under modest pressure during April as rising U.S. bond yields and dollar strength reduced investor appetite for risk assets.

Countries with large external financing needs experienced greater volatility, while Asian economies remained relatively resilient due to stronger growth conditions.

Commodities

Commodity prices strengthened during April, led by oil as geopolitical tensions and supply concerns supported energy markets.

Industrial metals remained relatively stable despite trade concerns, while gold prices weakened modestly due to rising bond yields and dollar strength.