Market Pulse - April 2023
- Monthly Market Pulse
- 28.09.23
Key themes
- Global stock markets rallied in April, supported by expectations of central bank rates peaking later this year. Bond markets were somewhat directionless amid mixed economic data.
- The global macroeconomic backdrop suggested inflation remains sticky while economic activity showed increasing signs of slowing.
- A divergence in policy paths opened between the US Federal Reserve and the European Central Bank, with the former expected to stop tightening in May and the latter projected to tighten further in the second half of the year.
Markets snapshot
- The MSCI AC World equity index rose by 1.4% (-0.1% in euros) over April.
- The US ended the month up by 1.3% (-0.3% in euros), as the start of the Q1 earnings season showed companies broadly posting better-than-expected results.
- European equities rose by 2.3%.
- Bond markets were somewhat directionless in April, with the ICE BofA 5+ Year Euro Government bond index down by 0.2%. This may have been due to mixed economic data, which was indicative of slowing activity but sticky inflation.
- The euro against the dollar ended April at 1.1019, recording a 1.7% rise over the month.
- Commodities declined by 0.8% (-2.3% in euro terms), with Brent crude oil down by -0.