Global equity markets lost 3.7% in April 2024, breaking a five-month streak of monthly gains. Market optimism over a US rate cut in the first half of 2024 was pretty well dashed and the investor outlook turned decidedly hawkish. The market turn was largely a function of disappointing US inflation numbers, as April marked the third-straight month of higher-than-expected core CPI inflation. US 10-year bond yields continued to rise and closed at 4.68%, approaching the 5% level, a level we last witnessed during the Global Financial Credit Crisis of 2007. With the hopes of lower interest rates dashed, the US Dollar gained against its major trading partners.

The local equity market recorded another strong month in April. BHP’s offer to purchase Anglo American, sent the share price of Anglo American flying, ending 32% higher at the end of April. Capitec (+11.1) and FirstRand (+5.6%) were the standout performers in the Financial sector. Stronger data out of China also supported companies like Naspers and Prosus, and commodities.