Stock markets continued to gain across most markets in April. This was less
because of raised projections for economic growth or corporate earnings, and
more due to reduced perceptions of downside economic risk.
Equities have broken the ranges they have held since mid-January, a
period of weak economic data and worsening credit crisis. Equity markets rose
by around 4% over April. VIX (Chicago Board of Exchange's Volatility Index),
an important sentiment indicator, moved to the lowest point since last October.
Flows also improved significantly over the last few weeks of April, most notably
in developed Europe and emerging markets.
Euro area equities failed to outperform over April, partly due to better
than expected U.S. data.
Emerging markets continued to move in line with developed stocks, defying
superior EM economic and earnings performance. Central banks are moving more
hawkish in fighting inflation (e.g. Singapore).
China's domestic markets have rebounded strongly in recent weeks,
helped by a reduction in stamp duty.
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