April was a positive month for the major European and US equity markets.
Monthly performance to end of April 2021
FTSE 100 (UK)
Dow 30 (US)
Euro Stoxx 50 (Europe)
Nikkei 225 (Japan)
In terms of currency, £ Sterling ended April at 1.38 US Dollars. This was 0.3% higher than the figure at the end of March.
Against the Euro, £ Sterling ended April at 1.15 Euros, which was 2.1% lower than the March closing figure.
Inflation, as measured by the Consumer Prices Index including owner occupiers’ housing costs (CPIH), was 1.0% in March 2021 (this is March’s data which is reported in April). This was up from 0.7% in the previous month, with rising prices for motor fuels and clothing causing the largest upward contributions to the change. The 12-month rate for the Consumer Prices Index (CPI) rate which excludes owner occupied housing costs and council tax was 0.7% in March, up from 0.4% in February.
There were no further changes to the Bank of England base rate last week following the two previous cuts in March. The current rate remains at 0.1%.
The Omnis Managed funds, Openwork Graphene Model Portfolios and Omnis Managed Portfolio Service provide you with a diversified asset allocation in line with your Attitude to Risk, investing in Developed Market Equities, such as UK, US, Europe and Asia Pacific as well as Emerging Market equities. Cautious and Balanced investors will also have significant holdings in UK and Global Bonds, as well as Alternative Strategies.
We believe this multi-asset approach aims to minimise global equity market falls in volatile periods. Past performance is not a guide to future performance. The value of an investment and any income from it can fall as well as rise as a result of market and currency fluctuations. You may not get back the amount you originally invested.
OMNIS MONDAY INVESTMENT CLUB EPISODE 15 – MARKET WEEK IN REVIEW (10 MAY)
It was generally a positive week for stock markets globally, despite a weaker start. Inflation prospects seemed to weigh heavily on investor sentiment during the week as Treasury Secretary Janet Yellen commented on rising interest rates. Economic data highlights the strong global rebound in economic activity.
US: Markets up despite inflation concerns
The S&P 500 returned 1.3%. Treasury Secretary Janet Yellen acknowledged that rates may have to rise to prevent the economy overheating, which weight on markets. However, payroll numbers suggest the economy was not growing as fast as expected.
Asia: Positive economic data coming out of China
Japanese stocks rose 1.9%, despite the government extending a state of emergency in various regions. Investor optimism was supported by prospects of the global economic recovery. China’s stocks fell during the week, despite positive economic data.
Europe: Growing confidence moves markets higher
In Europe, the Euro Stoxx 50 climbed 2.0% on stronger-than-expected earnings results and growing confidence in an economic recovery, as some countries begin to ease their lockdowns. Economic data continues to point to a broad pickup in eurozone activity.
UK: Strong economic expansion for 2021
The FTSE 100 and the FTSE 250 gained 2.4% and 1.3% respectively. The economy is likely to expand 7.25% this year, with government spending helping to limit job losses. The Bank of England said this recovery was “more of a bounce back” than a “boom”.
The Week Ahead
UK: focus election results, GDP numbers and manufacturing production
Europe: A quite week with some inflation and industrial production figures released
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