READING THE RIPPLES
April Highlights Reel
- Global markets wrestled with tariff-driven volatility, but sentiment stabilised mid-month.
- The S&P 500 closed down just -0.7%, while global bonds posted gains (+1.0%).
- Emerging markets outperformed; gold hit a new record high at $3,500.
- SA equities rebounded (+4.2%) after political tensions eased and resource stocks rallied.
- Central banks are shifting course—more rate cuts are expected in the US and EU.
- The US dollar softened notably, while the euro, franc, and yen gained ground.
Key takeaway: Amidst rising volatility, diversification and composure remain your strongest allies.
April 2025
Market Highlights
Delivering sharp insights into global financial trends from our WellsFaber team.
April Market Wrap: Volatility, Vows, and Valuable Recoveries
As April unfolded, global markets were once again put to the test, with volatility surging on the back of tariff tensions, political wrangling, and shifting economic signals.
Yet, even in the face of these headwinds, several markets proved resilient—reminding us that while short-term swings can be unsettling, long-term strategy and diversification continue to be essential.
Tariffs and Tensions: A Global Wake-Up Call
The month began with sharp equity sell-offs following the Trump administration’s announcement of sweeping new tariffs on imported goods. The scope and severity of the proposed measures—particularly those targeting China—rekindled fears of a global trade war.
The S&P 500 initially dropped, reflecting investor unease, and bond markets were equally rattled, with concerns that Federal Reserve Chair Jerome Powell might be dismissed adding to the instability.
However, markets found their footing after a 90-day postponement on most of the tariffs was announced (with the notable exception of China), giving room for potential bilateral negotiations. A softer tone from the White House and stronger-than-expected US earnings helped restore confidence.
The S&P 500 ultimately ended the month down just -0.7%, while the Bloomberg Global Aggregate Bond Index posted a +1.0% gain in USD.
Emerging Markets and Resources Prove Resilient
Emerging markets outperformed developed counterparts, climbing +0.9% for the month. Brazil’s Bovespa (+3.7%) and Korea’s Kospi (+3.0%) stood out, buoyed by relative political stability and stronger local sentiment. China’s Hang Seng Index, however, dropped -4.3% amid escalating tariff measures and tit-for-tat responses that saw import levies on Chinese goods reach as high as 145%.
Meanwhile, gold continued its climb, hitting a new all-time high of $3,500 and rising +5.3% for the month—driven by heightened geopolitical uncertainty and sustained central bank demand.
Oil prices, in contrast, fell sharply. WTI crude dropped 18% to $58, as OPEC+ increased production and global slowdown concerns weighed on forecasts.
South Africa: Rebound and Resolve
Locally, the FTSE/JSE Capped SWIX Index ended April up +4.2%, staging a strong comeback after early-month declines of nearly -14%. The recovery was fueled by a resolution in the GNU’s political standoff over a proposed VAT increase and a strong rally in gold shares (+8%) riding the global gold price wave.
South African bonds also recovered, delivering solid returns after a rocky start to the month. Markets are now anticipating interest rate cuts over the next twelve months as inflation expectations moderate.
Currencies and Central Banks: A Tectonic Shift
The US dollar continued its retreat in April, with notable declines against the euro (+4.7%), Swiss franc (-6.6%), and Japanese yen (+4.6%). In Europe, the ECB cut interest rates again, supported by subdued inflation and stable economic activity.
Markets now expect further rate reductions across the US and Europe through the remainder of 2025.
Looking Ahead: Perspective in Uncertainty
April reminded us that markets remain sensitive to political headlines and macroeconomic surprises. From tariff threats to currency shifts, the ability to remain invested and diversified is more vital than ever.
As volatility spikes, so too does the temptation to react impulsively. But history reminds us: even in stormy markets, opportunities emerge. (read our blog here)
At WellsFaber, our role is to help you navigate the noise, assess the signals, and keep your strategy aligned with what matters most—your long-term goals.
We advise, you thrive.