April 2024

• Global markets experienced increased volatility in April as stronger inflation data and rising geopolitical tensions reduced expectations for near-term interest rate cuts.
• Bond yields rose sharply as investors reassessed central bank policy expectations.
• Technology stocks remained relatively resilient despite pressure from higher interest rates.
• Middle East tensions increased concerns regarding energy supply disruptions and inflation risks.
• Chinese economic conditions remained mixed despite continued government support measures.
• Commodity prices strengthened further, particularly oil and gold.

Asia (ex. Japan)

Asian markets outside Japan delivered mixed performance during April as investors balanced strong technology sector momentum against rising global bond yields and continued concerns regarding Chinese growth.

Taiwan and South Korea remained supported by semiconductor and artificial intelligence demand, while Chinese markets struggled to maintain momentum despite ongoing stimulus measures.

Europe

European equities weakened modestly during April as rising bond yields and geopolitical tensions weighed on investor sentiment across cyclical sectors.

Inflation remained above central bank targets despite ongoing moderation, leading investors to reduce expectations for rapid European Central Bank rate cuts.

United States

U.S. equities experienced increased volatility during April as stronger-than-expected inflation data reduced expectations for imminent Federal Reserve interest rate cuts.

Treasury yields rose sharply throughout the month, creating pressure for growth-oriented sectors, though artificial intelligence-related technology companies remained relatively resilient.

United Kingdom

UK equities delivered mixed performance during April as higher bond yields and persistent inflation concerns weighed on domestic market sentiment.

However, investors continued anticipating eventual Bank of England policy easing later in the year if inflation trends continued improving.

Japan

Japanese equities remained relatively strong during April despite increased volatility linked to significant yen weakness and rising global bond yields.

The yen fell to multi-decade lows against the U.S. dollar, increasing speculation regarding potential intervention by Japanese authorities.

Emerging Markets

Emerging markets faced pressure during April as rising U.S. bond yields and stronger dollar conditions reduced investor appetite for higher-risk assets.

Technology-related Asian markets remained comparatively resilient due to continued semiconductor demand and artificial intelligence-related investment trends.

Commodities

Commodity prices strengthened during April as geopolitical tensions in the Middle East increased concerns regarding potential energy supply disruptions. Oil prices remained elevated throughout the month.

Gold prices surged to record highs due to geopolitical uncertainty, central bank buying and inflation concerns, while industrial metals delivered mixed performance amid ongoing Chinese demand weakness.