Market Review – April 2026

Please see our glossary for information on the financial terms used in this article.

Global equity (shares) markets rebounded strongly in April, recovering much of the sharp risk-off decline seen in March, when investors became more cautious and moved away from high-risk assets. Fixed income (bonds) returns were more subdued, as investors continued to worry about the future path of interest rates.

US equities were the standout performer in the month, with the S&P 500 Index (which tracks the 500 largest US stocks) recording its strongest monthly gain since November 2020 (the COVID-19 vaccine breakthrough). Investors largely looked past ongoing Middle East tensions and refocused on robust first-quarter earnings, particularly from large technology and semiconductor (computer chip) companies.

Japanese equities also performed well, supported by strength in technology and robotics stocks. Emerging market equities rose too, driven by Asian technology stocks and resilience in several Latin American markets.

European and UK equities also rose, but performance was more muted. Higher energy costs and weaker macroeconomic data tempered investor optimism.

Yields on developed market sovereign bonds finished the month higher and at multi-year highs in some cases (although not in the US), pressured by continued geopolitical tension and expectations that energy prices would stay higher for longer.

UK gilts (UK government bonds) underperformed other developed market sovereign bonds, reflecting domestic political concerns and high levels of government debt.

Corporate bonds delivered modestly positive returns as credit spreads narrowed, benefiting from the renewed risk appetite. Emerging market bonds also recorded gains. Central banks in the US, UK and the eurozone held rates steady in the month, despite the pick-up in inflation.

The US dollar, which strengthened sharply during March’s risk-off environment, ended April softer as investor confidence improved, while sterling strengthened against the euro and the yen.

Oil prices experienced heightened volatility throughout the month. On-off talks between the US and Iran took place, but despite a ceasefire, shipping through the Strait of Hormuz (a key route for global energy and other essential commodities) remains restricted. Copper performed strongly, rising sharply on supply disruptions and continued structural demand linked to electrification and data centre investment, while the gold price edged lower.