Economic Views

Monthly markets review - April 2016

A look back at markets in April 2016, when oil prices gained and markets were surprised by a lack of action from the Bank of Japan.

05/09/2016

  • April proved a calmer month for equities after the volatility of the first quarter, with global equities posting gains for the month. Oil prices rose amid indications of a rebalancing in the market, such as lower US stockpiles.
  • US equities registered a modest advance, supported by resources and financials. However, GDP figures disappointed and the technology sector performed poorly.
  • Eurozone equities posted positive returns with gains for the energy sector and data showing GDP growth of 0.6% in the first quarter. Resource stocks also boosted the UK stockmarket.
  • In Japan, investors were surprised by the central bank’s decision to take no further policy action at the April meeting, which resulted in a sharp rise in the yen.
  • Emerging markets generated positive returns but lagged developed markets. Latin American markets were strong, with political development underpinning gains for Brazil.
  • In fixed income markets, major corporate bond markets advanced again, outperforming government bonds.

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The views and opinions contained herein are those of Schroders’ investment teams and/or Economics Group, and do not necessarily represent Schroder Investment Management North America Inc.’s house views. These views are subject to change. This information is intended to be for information purposes only and it is not intended as promotional material in any respect.