Global equities bounced back strongly in April (MSCI World +9.6% MoM), driving the global equity benchmark back into positive territory for the year (MSCI World +5.8% YTD). It was the best monthly performance for global equities since the announcement of effective COVID-19 vaccines in late 2020. For the second consecutive month, it was the US mega-cap tech shares that were amongst the best performers (Nasdaq 100 +15.7% MoM). The initial catalyst for the surge in equities was the US announcement on 7 April of a two-week ceasefire with Iran, while robust US corporate earnings helped sustain the positive momentum. More than 60% of S&P 500 companies reported 1Q26 results during April, with aggregate earnings growth of 28% YoY (c. 20% ahead of analyst expectations).
Alphabet, Amazon and NVIDIA were amongst the largest contributors to April’s index performance (+34%, +27% and +14% MoM, respectively). Alphabet reported US$20bn of cloud revenue in 1Q26 (+63% YoY), while its cloud backlog doubled to US$460bn QoQ. Amazon delivered 28% YoY revenue growth in its cloud division, while unit sales growth in its e-commerce business grew 15% YoY (the fastest pace since 2021). NVIDIA reported quarterly revenue of US$68bn, representing 73% YoY growth.
The more conservative corners of the global equity markets lagged in April, fading after a strong start to the year. Consumer Staples companies (+3.1% MoM) and Healthcare stocks (-0.4% MoM) were some of the worst-performing sectors in April. Energy stocks declined 3.5% MoM (the worst-performing sector in April), drifting lower with energy prices, although the sector remains comfortably the top performer YTD (+33.5%). The Brent crude oil price experienced some wild intra-month swings, falling below US$90/bbl mid-month and then climbing to US$125/bbl, before ending April at US$114/bbl (-3.7% MoM).
Emerging market (EM) equities also had a stellar start to 2Q26 (MSCI EM +14.7% MoM), boosted by currency tailwinds, which saw the US dollar weaker against most major currencies in the month. The US Federal Reserve (Fed) meeting late in April saw rates left unchanged (as expected). However, the statement from the committee suggested that at least three members would have preferred guidance that was more explicit about the possibility of the Fed’s next move being a rate hike. The slightly hawkish tone out of the Fed, along with elevated energy prices, pushed the US government’s 10-year borrowing rate marginally higher to 4.4% p.a.
