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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