Europe | 43.2 % | 43.9 % | 87.1 % |
North America | 49.0 % | 18.5 % | 67.6 % |
Latin America | 0.4 % | 19.2 % | 19.6 % |
Asia | 4.3 % | 3.9 % | 8.2 % |
Asia-Pacific | 3.0 % | 3.0 % | 6.0 % |
Africa | - | 5.1 % | 5.1 % |
Eastern Europe | - | 3.4 % | 3.4 % |
Middle East | 0.1 % | 3.1 % | 3.2 % |
Total | 100.0 % | 100.1 % |
Market environment
April was a difficult month for equities and bonds due to higher-than-anticipated US inflation and persistently solid growth. This led the markets to lower their expectations of imminent rate cuts at the Federal Reserve, pushing up bond yields and pressurising share prices. The US 10-year yield reached its highest level (4.70%) since the end of 2023 as the market adjusted to the “higher for longer” scenario for interest rates. Global equities were down but credit markets performed relatively well. Investment grade spreads tightened further in both the United States and Europe. The month also brought announcements of Q1 results. Although most companies beat forecasts, the markets were more willing than usual to punish those who fell short. The wider spread between the interest rates of Japan and other developed countries exerted downside pressure on the yen and raised concerns about the effect of imported inflation on Japanese domestic demand. Conversely, higher commodity exposure and investors’ renewed interest in cheap Chinese equities meant emerging markets delivered positive returns over the month.