April 2023

• Global markets advanced in April as banking sector fears eased and corporate earnings generally exceeded expectations.
• Technology stocks continued outperforming amid improving sentiment toward artificial intelligence and large-cap growth companies.
• Inflation showed signs of gradual moderation, though central banks maintained cautious and restrictive policy guidance.
• Economic data remained relatively resilient across major developed economies despite tighter financial conditions.
• Emerging markets benefited from stabilising financial markets and continued Chinese reopening activity.
• Commodity prices delivered mixed performance amid slowing manufacturing activity and stable energy demand.

Asia (ex. Japan)

Asian markets outside Japan advanced during April as improving Chinese consumer activity and stabilising global financial conditions supported investor confidence.

Technology-oriented markets such as Taiwan and South Korea benefited from renewed enthusiasm surrounding artificial intelligence and semiconductor-related sectors, while broader regional sentiment improved following the easing of banking sector concerns.

Europe

European equities delivered positive performance during April as recession fears moderated and corporate earnings generally proved more resilient than expected.

Energy prices remained significantly lower than late-2022 peaks, helping ease inflation pressures and support consumer and industrial sectors across the region.

United States

U.S. equities advanced during April as strong earnings from major technology companies and easing banking sector concerns improved investor sentiment.

Artificial intelligence-related optimism became a major market theme, supporting large-cap technology stocks despite continued Federal Reserve warnings that interest rates would likely remain elevated.

United Kingdom

UK equities delivered relatively stable gains during April as declining energy prices and improving global market sentiment supported investor confidence.

However, inflation remained persistently high, keeping expectations elevated for further Bank of England interest rate increases during the coming months.

Japan

Japanese equities advanced strongly during April as accommodative monetary policy, improving corporate governance reforms and recovering global demand supported investor optimism.

The Bank of Japan maintained ultra-loose monetary policy under Governor Kazuo Ueda, reassuring markets that any future policy adjustments would likely occur gradually.

Emerging Markets

Emerging markets performed positively during April as stabilising financial markets, falling bond yields and ongoing Chinese reopening activity supported investor sentiment.

Asian economies particularly benefited from improving regional trade conditions and stronger technology sector performance.

Commodities

Commodity prices delivered mixed performance during April. Oil prices remained relatively stable despite weaker manufacturing data, while industrial metals were supported by Chinese reopening demand expectations.

Gold prices remained elevated due to lingering concerns regarding financial stability, inflation and central bank policy uncertainty.