An aggressive initial position taken by the EU on Brexit talks, and a recovery in Sterling to more than $1.29 (a level not seen since last September) caused internationally-based large-cap stocks to pause for breath.
Major markets failed to make significant progress in April. Some profit-taking after a good first quarter, and the ongoing inability of President Trump to enact any of his key policies, saw investor’s belief in US growth waver.
The brakes were put on Europe’s attempts to set out its position ahead of Brexit negotiations, as the UK changed gear to election-mode after Prime Minister May announced an unexpected snap election on June 6th; current polls suggest the Conservative Party will win a larger majority in the UK parliament under Theresa May.
Elsewhere in the world, while Japanese equity markets were up in local currency terms for the month, year-to-date they were roughly 2% behind global peers. Later in April, sabre rattling between North Korea and President Trump weighed on markets but relief came in the form of a falling yen, and Emmanuel Macron being elected as the French President.
To read more about the markets, please download the Full April 2017 Market Review.
