April 2024 Market Update

Overview

Global markets rolled back in April due to a shifting interest rate outlook, with inflation in most major economies remaining higher than expected. This triggered fears that central banks will not ease monetary policy quickly. Both the equities and bond markets fell, with UK investors in global equities seeing a -2.2% return in Sterling.

US markets fell 4.2% in April as several technology companies posted mildly disappointing Q1 earnings. AI remains a key theme, with winners and losers constantly evaluated. The top-performing market was the UK where benchmark stocks hit a record high.

With expectations for rate cuts being pushed back, both the UK and US 10-year yields rose nearly 0.5%. European rates remained steadier, with the ECB now expected to cut rates first as inflation in the Eurozone fell faster than the US or UK. Elsewhere, gold hit a record high and is up nearly 15% year-on-year, with central bank demand growing amid rising geopolitical tensions.

Full update below…