April 2022 economic and market update

May 2022

Market volatility rose sharply in April due to continued inflation pressures, driven by supply chain issues, global
stimulus, and the war in Ukraine.

  • Except for commodities, all asset classes declined in April.
  • Equities fell across the board with the US experiencing the steepest declines.
  • Value-oriented equities outpaced growth in the US, influenced by higher interest rates and notable weakness in some high-profile technology companies.
  • The global bond selloff continued, as rates rose further on inflation fears and policy expectations.
  • Rates rose across the US yield curve, with the curve steepening after a brief early month inversion.
  • Inflation remains high globally given lingering supply issues from the pandemic and the conflict in Ukraine.
  • The pace of policy tightening will likely increase due to persistent inflation.

The conflict in Ukraine, lingering COVID-19 issues, persistent inflation, and strict lockdowns in China will all have considerable economic and financial consequences for the global economy going forward.

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