Wednesday 22nd April 2026
Weekly Market Update
Overview
Last week, global financial markets mostly moved higher as investor sentiment improved on easing geopolitical tensions and hopes of more stable energy supply conditions. In developed markets, the U.S. led gains with record highs driven by strong tech and AI stocks, solid earnings, and supportive economic data, while Europe and the UK also rose as earnings and easing inflation concerns supported sentiment despite slower growth outlooks. Japan advanced to new highs, supported by strong corporate themes and continued monetary policy uncertainty from the Bank of Japan. In emerging markets, China saw modest gains on better-than-expected GDP growth, though weakness in domestic demand and property remained a concern, while India extended its recovery with broad-based gains led by mid and small caps as risk appetite improved. MENA markets were mixed but stable, supported by easing geopolitical fears but still sensitive to oil price volatility and regional tensions. In commodities, oil remained volatile due to Middle East developments, gold stayed supported as a safe-haven asset, and industrial metals moved unevenly. In currencies, the US dollar fluctuated with risk sentiment, while commodity-linked currencies were relatively supported and the yen remained weak overall due to interest rate differences. Overall, markets were largely driven by geopolitics, central bank expectations, and earnings momentum, with investors showing a cautious but improving risk appetite across regions.
The Week Ahead
WED: U.S Crude Oil Inventories: Weekly data showing how much crude oil is stored in the U.S., which helps indicate demand, supply trends, and potential direction of oil prices.
THU: U.S S&P Global Composite PMI (Apr): A monthly indicator that tracks overall business activity across manufacturing and services sectors, where a reading above 50 signals expansion and below 50 indicates contraction
FRI: U.S Fed’s Balance Sheet: Shows the total assets held by the Federal Reserve, reflecting its monetary policy stance and liquidity conditions in the financial system.
Outlook: As we move into 2026, the tug-of-war between global growth and inflation has moderated, allowing central banks greater flexibility to shift from restrictive policy toward gradual easing. While the pace of rate cuts is likely to be measured, monetary conditions are becoming more supportive for risk assets. We continue to favour equities, with a focus on high-quality, profitable, blue-chip companies that exhibit strong balance sheets, durable earnings and healthy free-cash-flow generation. Fixed income remains an important portfolio anchor, with yields still attractive by historical standards and offering income and diversification benefits without excessive duration risk. Beyond developed markets, emerging market equities and smaller companies continue to trade at compelling valuation discounts relative to US large-cap peers, presenting selective opportunities for long-term investors. Overall, the outlook for equities in 2026 remains cautiously constructive, supported by easing financial conditions, resilient corporate fundamentals and improving global liquidity, while acknowledging that geopolitical risks, fiscal dynamics and sector-level dispersion will remain key factors to monitor.
Asset class forecasts*
Developed Markets
North America
Last week, U.S. stock markets continued their strong upward momentum, marking a third consecutive week of gains and reaching record highs, largely driven by technology and AI-related companies. Investor sentiment improved further as tensions in the Middle East eased, with progress on a U.S.-Iran ceasefire and stability in key oil routes pushing oil prices lower. Strong earnings from major banks added to the positive tone, with management highlighting solid consumer spending and a steady economic backdrop. Economic data remained supportive—wholesale inflation came in lower than expected and jobless claims stayed stable, indicating a resilient labour market. Manufacturing activity also picked up with stronger new orders and shipments, although rising input costs remain a concern. Meanwhile, the housing market continued to show weakness, with declining home sales and softer builder confidence. In fixed income, U.S. Treasuries posted gains as yields fell, while high-yield bonds outperformed on the back of stronger risk appetite and robust demand for new issuances, reflecting broader optimism across financial markets.
Europe & UK
Last week, European equity markets ended higher as investors focused on corporate earnings and easing geopolitical tensions, particularly after Iran signalled plans to open the Strait of Hormuz. The STOXX Europe 600 Index rose, while major national indices also gained, with Germany’s DAX leading the advance, followed by Italy’s FTSE MIB and France’s CAC 40, while the UK’s FTSE 100 posted a smaller increase. On the policy front, European Central Bank officials indicated they are in no rush to raise interest rates, emphasizing the need for more data on inflation and demand before making any decisions. Meanwhile, the IMF slightly lowered its growth outlook for the eurozone, citing risks from ongoing geopolitical tensions and potential energy supply disruptions. Economic data showed a mixed picture—eurozone industrial production unexpectedly returned to growth in February, but concerns remained over long-term momentum. In Germany, wholesale prices rose sharply, driven mainly by higher energy and metal costs linked to global conflict. In the UK, the economy surprised positively with stronger-than-expected growth in February, although the IMF still downgraded its longer-term growth forecast for the country, reflecting broader structural challenges.
Japan
Last week, Japanese equity markets advanced, with the Nikkei 225 Index rising 2.73% to reach a new all-time high, while the broader TOPIX Index also posted gains. Stocks were supported by cautious optimism around easing geopolitical tensions, as ceasefire developments raised hopes for improved U.S.-Iran relations and reduced global uncertainty. Investor sentiment was further helped by renewed focus on earlier key drivers such as artificial intelligence-related growth themes, strong corporate earnings, and ongoing corporate governance reforms. On the monetary policy side, expectations of an interest rate hike by the Bank of Japan in April eased after Governor Kazuo Ueda struck a cautious tone, highlighting uncertainty around inflation pressures and economic growth risks. As a result, Japanese government bond yields remained stable, and the yen traded in a relatively narrow range against the U.S. dollar. Meanwhile, economic sentiment weakened, with a sharp drop in manufacturing confidence reported in the Reuters Tankan survey, reflecting concerns over energy supply disruptions and global trade risks linked to geopolitical tensions in the Middle East.
Emerging Markets
China
Last week, Chinese equity markets posted modest gains, supported by stronger-than-expected economic data, although overall sentiment remained cautious due to ongoing geopolitical tensions and oil price volatility. The CSI 300 Index, Shanghai Composite, and Hong Kong’s Hang Seng Index all rose, reflecting improved investor confidence after China’s Q1 GDP growth came in above expectations at 5.0% year over year, driven mainly by strong exports and steady industrial production. However, the recovery remained uneven, as domestic demand showed weakness—retail sales growth slowed, fixed investment moderated, and property investment continued to decline sharply. Trade data also pointed to a mixed picture, with export growth slowing significantly compared to earlier months while imports surged, indicating stronger commodity demand but weaker external momentum. Credit data suggested that liquidity conditions remained supportive, but underlying demand for borrowing was still soft despite a rebound in new lending and overall financing activity.
India
Last week, Indian equity markets extended their recovery for a second straight week, supported by improving global sentiment and easing geopolitical tensions. The Nifty 50 rose 1.26%, closing at 24,353.55, as optimism grew around a ceasefire between Israel and Lebanon and hopes of further diplomatic progress between the U.S. and Iran. Market volatility also declined, with the India VIX falling sharply, reflecting reduced investor anxiety. Broader markets outperformed large caps, with midcap and small-cap indices posting stronger gains, indicating a return of risk appetite among investors. Sectorally, high-beta segments led the rally, with metals, consumer durables, and realty stocks delivering strong gains on improved growth expectations. In contrast, the auto sector underperformed and ended in negative territory, making it the main laggard during the week. Overall, the market tone remained positive, driven by global stability cues and broad-based participation across sectors.
MENA
Last week, MENA markets saw a mixed but generally steady performance as investors balanced improving risk sentiment with ongoing geopolitical uncertainty linked to Middle East tensions and oil price volatility. Regional equities such as UAE, Saudi Arabia, Qatar, and Egypt showed modest gains, supported by optimism around potential U.S.-Iran diplomatic talks and easing fears after ceasefire developments in the region. However, sentiment remained cautious as the Strait of Hormuz situation continued to be a key concern, keeping energy markets and inflation expectations in focus. Oil prices stayed volatile due to supply disruption risks, which also influenced sector performance across the region, with energy-related stocks supported while some defensive profit-taking was seen in other areas. Overall, liquidity remained stable and markets continued to react more to geopolitical headlines than domestic fundamentals, with investors closely watching developments that could impact oil flows and regional stability.
Commodities and Forex
Commodities
Last week, commodity markets were highly driven by geopolitical developments in the Middle East, especially news around the ceasefire and the Strait of Hormuz. Oil prices remained volatile, initially falling on expectations of easing supply disruptions but later fluctuating as uncertainty persisted over whether shipping routes would fully reopen. Overall, crude oil stayed sensitive to every headline, reflecting concerns about supply shortages and global energy security. Precious metals such as gold remained supported due to safe-haven demand, while industrial metals showed mixed performance as investors balanced weaker global growth expectations with supply-side risks. Natural gas and energy-related commodities also stayed elevated due to tighter supply conditions and disruptions in shipping routes. Despite some short-term relief from ceasefire optimism, commodity markets overall remained cautious, with prices reacting more to geopolitical risks than underlying demand trends.
Currencies
Last week, currency markets were mainly driven by geopolitical developments, especially easing tensions in the Middle East and shifting expectations around global growth and interest rates. The U.S. dollar initially strengthened as safe-haven demand returned during periods of uncertainty but later gave back some gains as optimism around ceasefire progress and improved risk appetite reduced demand for defensive assets. The euro and sterling saw periods of recovery as investors priced in better risk sentiment, although gains remained uneven due to ongoing energy price concerns affecting Europe’s growth outlook. The Japanese yen remained weak overall, pressured by wide interest rate differentials with the U.S., although it showed occasional strength when risk sentiment improved or intervention concerns increased near key levels. Commodity-linked currencies such as the Australian and Canadian dollars were relatively supported by stable risk appetite and firmer commodity prices. Overall, FX markets stayed highly sensitive to geopolitical headlines, with currency moves largely driven by shifts in risk sentiment, oil prices, and central bank expectations rather than strong domestic data trends.
Commodities
| Name | 10/04/26 | 31/03/26 | 31/12/25 | 31/12/24 |
|---|---|---|---|---|
| WTI Oil ($/barrel) | $96.57 | $101.38 | $57.42 | $71.72 |
| Brent Oil ($/barrel) | $95.20 | $118.35 | $60.85 | $74.64 |
| Gold ($/oz) | $4749.75 | $4668.06 | $4319.37 | $2624.50 |
| Natural Gas ($/mmBtu) | $2.65 | $2.88 | $3.69 | $3.63 |
Currency
| Name | 10/04/26 | 31/03/26 | 31/12/25 | 31/12/24 |
|---|---|---|---|---|
| Euro (€/$) | 1.1723 | 1.1553 | 1.1746 | 1.0354 |
| Pound (£/$) | 1.3462 | 1.3227 | 1.3475 | 1.2516 |
| Japanese Yen (¥/$) | 159.27 | 158.72 | 156.71 | 157.20 |
| Swiss Franc (CHF/€) | 0.9247 | 0.9237 | 0.9307 | 0.9401 |
| Chinese Yuan Renminbi (CNY/$) | 6.8292 | 6.8944 | 6.9880 | 7.2993 |
Index Valuations
Index Return
| Name | 1 Week (%) | Month-to-Date (%) | Quarter-to-Date (%) | Year-to-Date (%) |
|---|---|---|---|---|
| S&P 500 | 3.58% | 4.45% | 4.45% | -0.09% |
| NASDAQ Composite | 4.68% | 6.09% | 6.09% | -1.29% |
| DJ Industrial Average | 3.07% | 3.45% | 3.45% | 0.15% |
| S&P 400 | 3.37% | 4.36% | 4.36% | 6.97% |
| Russell 2000 | 3.99% | 5.40% | 5.40% | 6.37% |
| S&P 500 Equal Weight | 1.83% | 2.48% | 2.48% | 3.15% |
| STOXX Europe 50 (€) | 4.20% | 6.59% | 6.59% | 2.89% |
| STOXX Europe 600 (€) | 3.20% | 5.63% | 5.63% | 4.76% |
| MSCI EAFE Small Cap | 4.90% | 7.87% | 7.87% | 6.66% |
| FTSE 100 (£) | 1.72% | 4.32% | 4.32% | 7.90% |
| FTSE MIB (€) | 4.35% | 7.45% | 7.45% | 6.36% |
| CAC 40 (€) | 3.73% | 5.66% | 5.66% | 1.47% |
| DAX (€) | 2.74% | 4.96% | 4.96% | -2.80% |
| SWISS MKT (CHF) | 1.89% | 3.53% | 3.53% | 1.02% |
| TOPIX (¥) | 2.60% | 6.92% | 6.92% | 10.78% |
| Nifty 50 | 5.89% | 7.70% | 7.70% | -7.77% |
| Hang Seng (HKD) | 3.09% | 4.46% | 4.52% | 1.41% |
| MSCI World | 3.70% | 5.13% | 5.13% | 1.48% |
| MSCI China Free | 2.30% | 3.34% | 3.34% | -6.97% |
| MSCI EAFE | 4.44% | 7.45% | 7.45% | 6.28% |
| MSCI EM | 7.45% | 10.86% | 10.86% | 10.72% |
| MSCI Brazil (BRL) | 4.81% | 4.82% | 4.82% | 19.93% |
| MSCI India (INR) | 6.56% | 8.46% | 8.46% | -6.30% |
Fixed Income
| Name | 1 Week (%) | Month-to-Date (%) | Quarter-to-Date (%) | Year-to-Date (%) |
|---|---|---|---|---|
| Bloomberg US Aggregate | 0.33% | 0.33% | 0.33% | 0.29% |
| Bloomberg Global Aggregate | 0.88% | 1.14% | 1.14% | 0.06% |
| Bloomberg Euro Aggregate | 1.57% | 2.09% | 2.09% | -0.48% |
| Bloomberg US High Yield | 0.90% | 1.31% | 1.31% | 0.80% |
| Bloomberg Euro High Yield (€) | 0.94% | 1.41% | 1.41% | -0.11% |
Blend Fund Performance (Year-to-Date)
Direct Fund
| (14/04/26) | 1 Week (%) | 1 Month (%) | 6 Months (%) | Year-to-Date (%) | 1 Year (%) | 2 Years (%) |
|---|---|---|---|---|---|---|
| Aditum Global Discovery | 2.31% | 0.88% | 7.47% | 0.99% | 27.40% | 27.35% |
| Aditum India Explorer Fund | 2.85% | -0.06% | -7.72% | -8.48% | - | - |
| Ashoka WhiteOak India Opportunities | 5.73% | 4.00% | -11.89% | -11.34% | -4.13% | -4.33% |
| BlackRock GF World Healthscience USD | 2.65% | 0.18% | 4.27% | -3.25% | 10.63% | 7.38% |
| Emirates Global Sukuk | 1.42% | -0.36% | -0.21% | -1.28% | 4.52% | 8.60% |
| Emirates MENA Fixed Income | 1.59% | -0.51% | -1.28% | -2.55% | 6.44% | 9.16% |
| Emirates MENA Top Companies | 2.42% | 3.07% | -0.03% | 3.66% | 7.21% | 3.77% |
| Franklin Gold and Precious Metals USD | 8.70% | 8.86% | 36.91% | 18.13% | 123.16% | 260.38% |
| Harris Associates Global Equity | 4.66% | 2.71% | 3.00% | -2.03% | 17.39% | 16.84% |
| Loomis Sayles Global Growth Equity | 4.50% | 1.87% | -12.48% | -9.29% | 14.95% | 23.07% |
| Loomis Sayles Multisector Income | 0.63% | 0.69% | 0.93% | -0.06% | 8.19% | 14.06% |
| Loomis Sayles US Growth Equity | 6.52% | 3.31% | -4.44% | -5.77% | 22.44% | 29.22% |
| PineBridge Japan Small Cap Equity | 3.48% | 3.39% | 16.71% | 13.00% | 29.09% | 33.62% |
| UBAM 30 Global Leaders Equity | 5.09% | 4.23% | -1.84% | -2.99% | 14.29% | 8.03% |
| iShares US Corporate bond Index | 0.44% | 0.99% | 0.42% | 0.22% | 7.55% | 12.78% |
| iShares Developed World Index | 4.10% | 4.21% | 5.87% | 1.40% | 29.75% | 37.90% |
Nexus Blend Funds
| (14/04/26) | 1 Week (%) | 1 Month (%) | 6 Months (%) | Year-to-Date (%) | 1 Year (%) | 2 Years (%) |
|---|---|---|---|---|---|---|
| US Dollar High Risk Blend | 4.35% | 1.22% | 5.24% | 0.79% | 25.10% | 28.99% |
| US Dollar Medium-High Risk Blend | 2.74% | -0.23% | 3.55% | 0.21% | 20.82% | 26.12% |
| US Dollar Medium Risk Blend | 3.32% | 0.35% | 4.11% | 0.13% | 23.10% | 28.06% |
| US Dollar Medium-Low Risk Blend | 1.96% | -0.60% | 3.95% | 1.10% | 18.02% | 23.80% |
| US Dollar Low Risk Blend | 1.59% | -0.69% | 3.68% | 1.21% | 15.41% | 20.80% |
Zurich Mirror Funds
| (14/04/26) | 1 Week (%) | 1 Month (%) | 6 Months (%) | Year-to-Date(%) | 1 Year (%) | 2 Years (%) |
|---|---|---|---|---|---|---|
| Canaccord Genuity Balanced | 2.54% | 1.12% | 2.54% | 0.28% | 16.67% | 15.30% |
| Canaccord Genuity Growth | 3.28% | 1.47% | 2.46% | -0.37% | 20.27% | 16.95% |
| Canaccord Genuity Opportunity | 2.76% | 0.72% | 5.47% | 1.70% | 23.52% | 22.90% |
| Emirates Emerging Market Debt | 1.66% | -0.26% | 0.77% | -0.12% | 9.31% | 12.27% |
| Emirates Islamic Global Balanced | 4.02% | -0.92% | 1.59% | -0.37% | 17.18% | 16.00% |
* Data is lagged by 1 day.
** Data is lagged by 2 days.