.jpg)
Stocks rebounded in April, paring more than half of the losses from the previous two months, amid stronger-than-expected economic and earnings data, and an easing of geopolitical tensions.
A 1.8% drop in the euro against the dollar, its biggest retreat in one year, lifted the relative price of international holdings for Eurozone-based investors.
The STOXX® Global 1800 Index jumped 3% in euros in the month, and rose 1.2% in dollar terms. European stocks performed significantly better, with the EURO STOXX 50® Index and the STOXX® Europe 600 Index logging their best month since Dec. 2016.
Despite 10-year US Treasury yields topping 3% for the first time in four years, the fundamentals of a global economy that remains on strong footing seem to have encouraged buyers. US first-quarter gross domestic product growth exceeded economists’ forecasts, as did an April measure of services and manufacturing activity in the Eurozone.
Geopolitical tensions cooled down somewhat over the month. The trade rhetoric between the US and China appeared more restrained. Halfway through the month, Western allies bombed Syrian targets, but Russian-backed forces didn’t retaliate. Meanwhile, the two Koreas held a historic meeting, a rapprochement that has raised hopes of denuclearization in North Korea.
As global, market capitalization-weighted benchmarks rallied, some targeted strategies fell behind, including low-volatility and thematic ones. High-dividend stocks, however, recorded the best month in more than two years despite the rise in interest rates.
Please find details in the attached document.
Download:
