Market review April 2025

During April 2025, the FTSE All World, a representative global equity index, declined 2.4% in sterling terms. However, the fall was only 0.3% in local currency terms. Japan and Europe were the strongest regional equity markets in sterling terms, although Europe dropped back in local terms. The UK market declined slightly, while the US and emerging markets weakened in sterling terms, although the latter gained ground in local terms. Growth stocks outpaced value over the month. April started turbulently as the US president announced a broad set of global trade tariffs. This tariff programme was more extensive than expected and led to a broad sell off in equities. Stocks recovered some ground as the US announced a pause in tariffs for countries that had not implemented retaliatory trade measures, and it also unwound tariffs on certain electronic goods, including smartphones and laptops, from China. In fixed income, the ICE BofA Global Government Index increased by only 0.1% in sterling terms but added 1.0% in local currency terms. Sterling rose against the US dollar.