Latest financial update, April 2026

Being aware of what’s affecting financial markets can help you understand how your investments are performing. 

Markets are influenced by a range of factors. Interest rates and inflation affect how confident consumers and businesses feel, which in turn shapes market behaviour. Economic news, company results, political events and global shocks - such as elections, conflicts or unexpected crises - can also move prices up or down. Even investor emotions play a role: when people feel optimistic, markets tend to rise, and when they feel uncertain or fearful, markets usually fall.

Highlights

• Stock markets around the world moved higher led by shares in AI-related companies and emerging markets. The MSCI ACWI Index, which represents a range of companies from around the world, increased in value by 6.9% during April.
• Major central banks, including the Bank of England, kept interest rates on hold, though there was increased concern about rising prices, also known as inflation.
• Oil prices remained volatile as ceasefire negotiations between the US and Iran continued.

Shares

Global stock markets rose on strength in technology and AI-related shares

Global stock markets performed well, led by Asia-Pacific, emerging markets and the US. This was the result of particular strength in shares in companies related to Artificial Intelligence (AI), and despite ongoing geopolitical conflict.

Oil prices, however, remained volatile as tensions around the Strait of Hormuz, a key shipping lane, continued. This increased concerns that higher energy costs could cause a rise in the prices of goods and services.

In the UK, the FTSE 100 of the UK’s biggest companies rose by 2.3%. The Bank of England kept interest rates on hold, despite an increase in inflation. However, there was a growing belief that the Bank may increase interest rates in the future if oil prices should remain high.

US stock markets jumped as many company earnings beat expectations and the technology sector performed strongly. Other markets that did well included emerging markets, Asia Pacific and Japan.

Bonds

Global bond markets boosted

Bonds are loans to a government or company in exchange for regular interest payments and your money back later. When bond prices go up, yields, or the return you get from a bond, go down, and when bond prices fall, yields rise.

Global government bonds were slightly down amid volatility caused by worries about increasing inflation. Yields on UK government bonds, known as gilts, rose, which means prices went down. They rose on inflation worries and the expectation that this could lead to interest rate rises in the coming months.

Property

Property markets mixed performance

The UK’s monthly property index for March – the latest period we have figures for – was up very slightly. The retail sector, particularly related to retail parks and in central London performed better recently, as did the hotel sector – again, especially in London.

Outlook

Despite the ongoing conflict in the Middle East and continued volatility, equity returns (shares) have shown strong performance to date. In our view, volatility could continue.

We believe in having a geographical spread of equity market exposure, while continuing to monitor risks, such as the impact of trade tariffs, market concentration and geopolitical conflicts.