April 2020

• Global markets rebounded strongly in April as unprecedented central bank and government stimulus measures restored investor confidence following March's historic collapse.
• Equity markets recovered significantly despite severe economic contractions and rising unemployment globally.
• Central banks expanded emergency lending programmes and asset purchases to stabilise financial systems.
• Investors increasingly focused on the eventual reopening of economies following lockdown restrictions.
• Technology and healthcare sectors significantly outperformed broader markets.
• Oil prices experienced historic volatility, with U.S. crude futures briefly trading below zero for the first time ever.

Asia (ex. Japan)

Asian markets outside Japan rebounded strongly during April as aggressive monetary and fiscal support measures improved investor sentiment following March's extreme volatility. China continued gradually reopening its economy after earlier lockdowns, providing cautious optimism regarding regional recovery prospects.

Technology-focused economies such as Taiwan and South Korea outperformed due to strong demand for digital infrastructure and electronics, while broader regional markets remained supported by expectations for continued policy support.

Europe

European equities recovered during April as governments and central banks introduced unprecedented support measures aimed at stabilising economies and preserving employment during widespread lockdowns.

Despite the rebound in financial markets, economic data deteriorated sharply across the eurozone as manufacturing, retail and travel activity collapsed. Investors increasingly focused on long-term recovery expectations rather than near-term economic weakness.

United States

U.S. equities staged a remarkable rebound during April as aggressive Federal Reserve interventions and massive fiscal stimulus restored liquidity and improved market confidence. Technology companies and large-cap growth stocks led the recovery.

Economic data remained historically weak, with unemployment surging and consumer activity collapsing due to lockdown measures. However, investors increasingly focused on the potential reopening of economies and the scale of policy support available.

United Kingdom

UK equities rebounded during April as the Bank of England and government introduced extensive support programmes for businesses and workers affected by lockdown restrictions.

Despite improving market sentiment, economic activity remained severely disrupted due to nationwide restrictions. Investors remained cautious regarding the pace and sustainability of eventual recovery efforts.

Japan

Japanese equities recovered strongly during April as global financial conditions stabilised and policymakers introduced additional fiscal and monetary support measures.

The Bank of Japan expanded asset purchases and liquidity facilities, while investors remained optimistic that global stimulus efforts would eventually support export demand and corporate earnings recovery.

Emerging Markets

Emerging markets rebounded during April as global liquidity conditions improved and investor confidence stabilised following aggressive intervention by major central banks.

Asian economies recovered more strongly than commodity exporters due to earlier virus containment efforts and stronger technology sector exposure. However, many emerging economies continued facing significant economic and healthcare challenges.

Commodities

Commodity markets remained highly volatile during April. Oil prices experienced unprecedented disruption, with U.S. crude futures briefly turning negative amid collapsing demand and severe storage shortages.

Industrial metals stabilised modestly as Chinese manufacturing activity resumed gradually, while gold prices strengthened due to ongoing monetary expansion and safe-haven demand.