Equity Markets: Different Stories by Region

US Equities

US markets delivered a strong performance in April, with the S&P 500 rising by around 10% and the Nasdaq by approximately 15%. These gains were driven largely by technology and AI-related companies, supported by a very strong earnings season.

At the same time, valuations remain relatively high and market performance is concentrated in a small number of large companies, which means there is less room for disappointment.

UK and European Equities

European markets recovered during April, with Germany’s DAX rising over 7% and France’s CAC gaining close to 4%, although higher energy costs continue to put pressure on growth.

The UK market delivered more modest gains, with the FTSE 100 rising approximately 2%, supported by its exposure to energy and commodity-related sectors.

Asia, Emerging Markets and Japan

China’s markets were supported by government stimulus, with the Shanghai Composite rising around 6%, although growth remains uneven.

Japan was one of the strongest performers globally, with equities rising approximately 16%, supported by strong demand for technology and AI-related companies and an accommodative policy backdrop.

Across the broader region, opportunities remain but are increasingly concentrated in specific sectors rather than broad market exposure.

South Africa

South African equities experienced a volatile period, with mixed sector performance despite a modest overall market recovery of around 1% in April. Property performed well, while resource shares declined, reflecting softer commodity prices.

This highlights how sensitive the local market remains to global conditions, commodity price movements and currency shifts.

Across all regions, the key message is that market performance is becoming more uneven, reinforcing the need to focus on quality businesses with strong earnings and pricing power.

Commodities: Protection Rather Than Growth

Commodity markets, particularly energy, have risen largely due to supply constraints rather than strong demand. This has contributed to ongoing inflation pressures globally.

In this environment, commodities can play an important role in portfolios as a way of protecting against inflation and geopolitical risks, rather than as a primary source of long-term growth.