April Market Summary - What You Need to Know!

Summary

• Global equity markets ended a volatile month of trading ending mixed

• Following a sharp sell-off in the immediate after math of Trump's "Liberation Day" tariff announcements

• After the U.S. softened its stance, including a 90-day pause on certain reciprocal tariffs and the removal of levies on selected electronics

• Initial uncertainty drove the VIX volatility index to its highest level since the pandemic

• Equities improved as trade tone strengthened along with strong corporate earnings

• Developed markets finished higher, U.S. equities lagged global equities while emerging markets were supported by strength in Mexico and Brazil

• Defensive sectors led performance (these are sectors that tend to be less sensitive to economic cycles)

• Consumer staples and utilities outperformed followed by gains in industrials

• Energy was the weakest sector with falling oil prices

• Growth outperformed value with investment styles

• Mid caps outpaced small- and large-cap peers

Fixed income

• Bond yields rose sharply mid-month before easing

• U.S. ten-year yields peaking at 4.6% and ending at 4.2%

• Eurozone yields declined, helping boost global bond returns

• A strong euro and yen supported returns in U.S. dollar terms

Commodities

• Gold hit a record high of US$3,500 mid-month before retreating on profit-taking

• Oil fell 16%- the steepest monthly drop since 2021-due to rising inventories and growth concerns

• Base metals also weakened

Canada

• Canadian equities declined for a third consecutive month in April

• Late in April markets partially recovered

• TSX rose on strong U.S. earnings and reduced political uncertainty

• Canada's GDP contracted by 0.2% in February, with output declining across mining, oil and gas and construction

• Bank of Canada held its overnight rate at 2.75%, pausing after seven consecutive rate cuts since June 2024, reaffirming readiness to act if needed to control inflation

U.S.

• U.S. equities were very volatile in April falling sharply after "Liberation Day"

• Markets rebounded later in the month after a 90-day pause was announced for non-retaliating countries

• S&P 500 and Dow Jones Industrial Average ended the month lower- while the Nasdaq edged higher for the month, supported by gains in select technology stocks

• Energy stocks made the largest detractions, with oil prices falling more than 16% amid signals of increasing production from Saudi Arabia and concerns softer global demand due to trade tensions

• U.S. GDP contracted by 0.3% in the first quarter, due to weaker consumer spending and a decline in federal outlays

• Inflation eased for the second straight month, in part driven by a decline in energy prices

• Expectations grew that the U.S. Federal Reserve could begin easing policy later this year

• Labour market remained stable with unemployment at 4.2% with 177,000 jobs added

Global

• Like other equities, European equities declined in April and experienced a sharp drop after "Liberation Day"

• Equity markets rebounded after a 90-day pause was announced, however investor sentiment remained fragile amid ongoing policy uncertainty

• Market sentiment found some support in stronger-than-anticipated first quarter GDP growth in the eurozone

• Japanese equities advanced, with the Nikkei 225 posting gains, supported by strength in technology stocks and expectations that the Bank of Japan would maintain its policy

• Chinese equities declined amid weak economic data and lingering concerns about the trade outlook

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The comments contained herein are a general discussion of certain issues intended as general information only and should not be relied upon as tax or legal advice. Please obtain independent professional advice, in the context of your particular circumstances. This blog was prepared by Alison Cannell, for the benefit of Alison Cannell, Financial Advisor with Cannell Wealth Management Inc., a registered trade name with Investia Financial Services Inc., and does not necessarily reflect the opinion of Investia Financial Services Inc. The information contained in this blog comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability.

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