London, May 5, 2024 (Financeflashnews) – Global stock prices declined by 3.9% in April, largely driven by market expectations that interest rates will remain at higher levels for longer, particularly in the US. This is according to an analysis by Saxo Bank.
US Market Leads Decline
The US market bore the brunt of the negative performance, falling by 4.2%, as investors reassessed expectations for interest rate cuts. In Europe, performance fell by 1.4% as investor sentiment deteriorated.
“Part of this can also be attributed to expectations of higher or longer-lasting rates. The earnings season in Europe was also not as strong as in the US, which may also have put pressure on the stock index. This could improve in May,” said Soren Otto Simonsen of Saxo Bank.
Asia and Japan Drag Down Performance
Asia fell 1.5% month-on-month, mainly due to negative performance in Japan, which accounts for nearly 35% of the index. Both Japan and China were in focus amid discussions of potential currency interventions.
The Japanese stock market has had a tough month with high volatility surrounding the yen, meaning the Nikkei index closed the month down nearly 4%. China, on the other hand, is enjoying positive sentiment. The Chinese Hang Seng index rose by more than 7% for the month, contributing to the overall positive performance of emerging markets and a 0.3% gain as the only region.
Key Takeaways:
- Global stock prices fell in April, reflecting expectations of higher interest rates.
- The US market led the decline, followed by Europe.
- Asia and Japan were draged down by negative performance and currency concerns.
- Emerging markets were the only positive region, driven by gains in China.
Overall, the analysis suggests that global stock markets are facing headwinds due to concerns about interest rates and economic growth. Investors should remain cautious and monitor the situation closely.
