Equity markets saw a solid rebound in April after a relatively poor March. One of the best performing regions was the UK but for all the wrong reasons.
The positive movement was largely the result of currency weakness, after sterling was driven lower by weak economic growth data. Falling inflation as well as comments from the Bank of England means that expectations for rate rises are now at a much lower level. This further weakened the value of sterling.
Beyond the UK, concerns around restrictions on trade reduced as the language coming from the White House is less aggressive and it seems China is now looking to reach an agreement with the US. We are also yet to see any material pick-up in inflation in the US. This has minimised what was one of the key concerns for investors as higher inflation would mean central banks raising rates faster than is currently expected.
Read more about how Nathan Sweeney, Senior Investment Manager, positioned the Architas Multi-Asset Active Fund range last month in this shareable client-friendly PDF.
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