For the month of April 2022, main market topics were about covid in China, the war in Ukraine and its implications on growth and inflation and central banks policies to control the latter. China’s growth has been impacted by covid lockdowns despite the monetary support of the PBOC. The war in Ukraine keeps going and drives commodity prices higher – since the start of the conflict natural gas and wheat added +84% and +50.45% respectively. The rouble is back to pre-war levels - around the 70 mark - as energy transactions are being settled in roubles helping Russia minimise the impacts of all the sanctions in place. The Fed reaffirmed its intention to raise rates by 50bps to fight against inflation. The US 10Y yield hit 3% for the first time since 2018. The ECB is also looking to raise rates in Q3 for the 1st time in a decade. The EURUSD declined, getting closer to parity at $1.05.
Equity Indices: NDX: -13.37%, SPX: -8.80%, MSCI WORLD: -8.80%, MSCI ACWI: -3.09%, STOXX 600 BANK: -3.22%, SX5E: -2.55%, FTSE100: +38%, STOXX 600 Healthcare: +1.41%,
Bonds: German 10Y yield: +39bps, US10Y Yield: +59.6bps
Commodities: Gold: -9.98%, Oil: +1.33%, Wheat: +5.36%
From a regional perspective, US equity indices were in favour while European equity as well as International DM indices were sold. On the fixed income side, US bonds were in strong demand while their EU peers were sold.