Global Markets​

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In April 2026, global markets rebounded strongly as investors rotated back into risk assets, driven by renewed optimism around artificial intelligence and resilient corporate earnings, despite ongoing geopolitical tensions. While disruption to energy supply in the Middle East continued to keep oil prices elevated and inflation risks in focus, a temporary ceasefire early in the month helped stabilise sentiment and allowed markets to refocus on structural growth themes, particularly the continued expansion of AI-related investment.

 

Global equities posted strong positive returns in April, with the MSCI global index returning around 9.6%, reversing much of the weakness seen in March. The US market led the rally, with the S&P 500 rising around 10.5% during the month, supported by strong earnings and continued enthusiasm for large-cap technology companies. Asian markets also outperformed, with emerging markets gaining around 14.7%, driven by Taiwan and South Korea where the semiconductor and AI supply chain is most deeply embedded. Japan equities also rose modestly by 6.6%, benefiting from improved global risk appetite but limited by its constrained exposure to the AI theme. European equities increased despite its weak macroeconomic backdrop, with Europe ex-UK returning around 5.7%, supported by the relief from a US-Iran ceasefire and manufacturing activity tied to inventory restocking as well as investors’ preferences for cyclical sectors such as banks, industrials and capital goods.

 

Commodity markets remained firm in April, with the overall commodity index rising by around 4.2%. Oil prices were pushed above $110 per barrel due to ongoing geopolitical disruption, while industrial metals such as copper and nickel advanced by 5.0%, reflecting structural demand from electrification, renewable energy and data centre investment.

 

Global fixed income markets were volatile and broadly mixed during the month. Government bond yields initially declined on signs of de-escalation but moved higher later as inflation concerns resurfaced and energy disruptions persisted. The US Federal Reserve kept the federal funds target range unchanged at 3.50%–3.75% on 29 April, while the ECB kept its key interest rates unchanged at 2.00% on 30 April. The Bank of Japan left its policy rate around 0.75% but signalling a more hawkish outlook. Credit markets strengthened alongside the broader recovery in risk appetite, with spreads tightening across both investment grade and emerging market debt.

 

As of 30 April 2026:

UK 10 Year Gilt Yield 5.023%
US 10 Year Treasury Yield 4.391%
Germany 10 Year Bund Yield 3.041%

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UK Market​​​​

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April was more positive for UK equities, but the broader macro backdrop remained challenging as higher energy prices, sticky inflation and political and fiscal concerns kept pressure on the gilt market. UK equities rose by around 2.8%, supported by banks and technology hardware, but the market underperformed global peers because of its relatively low exposure to high-growth AI stocks and its larger weighting towards energy, healthcare and defensive sectors.

 

Monetary policy remained the key domestic theme. At its meeting ending on 29 April, the Bank of England voted by a majority of 8–1 to maintain Bank Rate at 3.75%, while one member voted to increase rates to 4.00%. The Bank highlighted that the war in the Middle East was raising energy prices and pushing up utility bills, which could feed through into prices and wages. CPI inflation had risen to 3.3%, increasing concerns that inflation could remain above target for longer.

 

At the same time, the domestic economy continued to show signs of softness. The labour market was still loosening, and weaker activity could help contain underlying inflationary pressure. However, the combination of higher imported energy costs, persistent domestic inflation and limited fiscal space left UK rates markets vulnerable. As a result, gilts weakened during the month, with the 10-year gilt yield reaching around 5.03% by 30 April, close to recent highs.

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Ark Insights

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April saw a sharp improvement in market sentiment, with strong equity gains driven by AI-related sectors, even as geopolitical risks and elevated energy prices persisted. The shift from March highlights how quickly markets can recover once uncertainty stabilises, despite underlying risks remaining unresolved.

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Looking ahead, much will depend on developments in the Middle East. A reopening of key energy routes could ease inflation pressures and support rate expectations, while prolonged disruption risks weighing on growth and keeping inflation elevated.

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In this environment, maintaining a well-diversified portfolio across asset classes, regions and themes remains essential.

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 As always, your advisers would be happy to assist with any questions you may have.

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The views expressed in this update are not intended as an offer or solicitation for the purchase or sale of any investment or financial instrument. The views reflect the views of Ark Investment Management at the date of this document and, whilst the opinions stated are honestly held, they are not guaranteed and should not be relied upon and may be subject to change without notice. Investments entail risks. Past performance is not necessarily a guide to future performance. There is no guarantee that you will recover the amount of your original investment. The information contained in this update does not constitute investment advice and should not be used as the basis of any investment decision. Any references to specific securities or indices are included for the purposes of illustration only and should not be construed as a recommendation to either buy or sell these securities or invest in a particular sector. If you are in any doubt, please speak to us or your financial adviser as appropriate.

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