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.
06 May 2016
Unstructured Learning Time
- 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.