April in review

Global equities rebounded in April, climbing a wall of geopolitical worry to deliver one of their strongest monthly returns since late 2020, despite the US-Iran conflict and its impact on energy markets. Disruption to traffic through the Strait of Hormuz kept oil prices elevated, reinforcing concerns about higher inflation and pushing out expectations for rate cuts from major central banks. Government bonds came under pressure as a result. But risk appetite proved resilient. Rather than extending March’s derisking phase, risk assets responded to a gradual stabilisation in headlines and renewed optimism around corporate earnings and artificial intelligence. Global equities, as measured by the MSCI All Countries World Index (MSCI ACWI), returned 10.2% in USD over the month.

The US led developed markets, as investors returned to AI-linked companies and other growth stocks, while Japanese stocks also recovered. In emerging markets (EM), South Korea and Taiwan were the standout performers globally, both setting all-time highs on the back of the AI semiconductor cycle. Chinese equities also advanced, but continued to lag the broader EM recovery, as significant structural challenges remain in place. Elsewhere, European and UK equities posted positive returns but underperformed the broader global rally.

Sector performance reinforced the growth and AI narrative. Information technology was the standout performer, while communication services and industrials also gained strongly, supported by enthusiasm for AI infrastructure, automation and broader capital spending. Consumer discretionary benefitted from the recovery in risk appetite. Performance within energy reflected consolidation following outsized strength in March, while health care was broadly flat and consumer staples, utilities and materials delivered more modest gains.

Source: Bloomberg as at 30 April 2026.