Here is the stock market review in April 2019, where the stocks continued to show growing numbers while the economic data continue to show encouraging figures. Equity markets in the world grew in April, displaying economic data and figures.
On top of that, all this was supported by the generosity of the central banks, encouraging an appetite for assets with higher risk, and government bonds were outperformed by the corporate bonds.
Before we move into the nitty-gritty of the stock market, let us give you an overview of the markets from around the world. The US equities were supported by excellent and robust labor market data and advanced. It was actually better than the forecast that was initially made for the Q1 GDP growth. Corporate earnings typically continued to remain robust.
Highlights of the Stock Market in Review for April 2019
European equities displayed and registered advancement and growth in the month of April, 2019. Some of the top-performing sectors in the European stock market included the finance sector and the information technology industry.
Initially, financial pundits had their fears and reservations about the growth and numbers in the first quarter of the European stock market. However, the Euro-zone breathed a sigh of relief with promising and resilient numbers.
The United Kingdom equities market really stood out, and some of the most positive gains were recorded after a while. However, it underperformed as far as the global equities market is concerned over the month of April 2019. One of the heavyweights of Britain’s market that is the mining sector was disappointing and performed really badly.
On the other end of the world in Japan, the stock market edged towards the higher end, whereas their currency Yen was edging a wee bit lower against the American dollar.
They were more focused on the beginning of the Reiwa era and the abdication of their emperor. All of these factors led the Japanese stock market to subdue under pressure, and this could be observed in their overall market behavior.
Amidst all the fuss about easing and implementing global growth concerns, the other emerging markets equities displayed and positive high and positive returns in the month of April 2019.
The MSCI index was led by South Africa to higher numbers. It was all down to the equities that started to rally in advance due to the upcoming general elections in the month of May 2019.
The government bond yields showed an increase, and the credit goes to the positive tone displayed in the economic data. Which means the prices fell. It prompted that all the fixed-income assets that are considered riskier are going to outperform.
However, it is important to bring to your attention that any past performance mentioned in this neuercapitalreview is not to predict any future behavior and performance. It is just a review of figures and numbers highs and lows as observed in the stock market, and may not repeat itself.
The countries, regions, sectors, and securities are depicted only for illustrated purposes. You must not consider this review to be a recommendation of buying or selling in any or all stock markets in way, shape, or form.
Now let us look into details of all the stock markets individually.
The United States Stock Market in April 2019
The stock market and the equities in the US promisingly posted solid gains in the month of April. This trend continued, and the market managed to hit yet another record high as the month progressed towards the end.
Federal Reserve showed a friendly stance which it was displaying since the beginning of the year 2019, and this dovish stance was consolidated by the time the month of March was about to end. However, the release of economic data with positive signs supported the risk appetite of the US stock market.
The US market observed an increase in the total number of non-farm payroll employment, and the figures reached 196,000, while the unemployment rate remained unchanged and stayed at 3.8 percent.
As the month of April progressed, the solid numbers from the promising first-quarter GDP helped boost the overall market. The market came in at annualized 3.2 percent, which was considerably higher than the figures of 2.2 percent, which were observed in the Q4 of 2018.
This behavior of stronger than ever expected growth along with positive economic data helped support the US market equities, especially observed and demonstrating stronger gains at the beginning of April 2019.
As the earnings grew stronger and the numbers started to look positive. On the rise, this depicted a picture of an earning season that was in full swing with evidence supporting positive economic trend to continue.
The technology sector stocks were supported as Amazon.com posted some of the strongest numbers in the first quarter of 2019, and similar was the story with Twitter. However, something bad happened and right at the last minute on the final day of the month’s trading.
Alphabet, which is a parent to Google, posted really disappointing numbers. It was all down to the fact that their first quarter’s predicted revenue fell short of what was expected by the financial markets and the stock market.
However, enough of the doom and gloom – the communication and information technology were two sectors that still ended the month of April 2019 on a sweet note and posted positive gains.
Financials stood out prominently amongst the most promisingly performing sectors during the month of April 2019, even when they performed really badly in March 2019.
Health care stocks were facing the music as the authorities wrestled with the drug pricing legislation. The ongoing concerns related to this façade could be clearly observed in the US stock market reviews in April 2019.
After demonstrating strong gains in the first quarter of 2019, the equities’ markets in the European region continue to show signs of advancement in April 2019. The return from the MSCI EMU index stood at 4.9 percent.
Top-performing sectors in the European zone included financials, Information technology, industrials, and consumer discretionary sector.
Most interestingly within the IT sector as a specific sector showed more promising results than any other. It was the companies dealing in the semi-conductors that released final results, which were stronger than expected and higher than what the market observed in the first quarter of 2019.
It sparks the enthusiasm amongst the financial pundits and the investors with high hopes that the sector is probably going to turn around, especially after a disastrous 2018. On the other hand, in the consumer discretionary sector, better performances were enjoyed by the sectors such as automakers.
April 2019 was not very promising or helpful to the ever falling stocks returns in real estate, utilities, and energy sectors. They actually showed results in negatives. However, improving data from the Chinese market helped to lift the mood and sentiments of the Eurozone market, especially towards the markets that are considered to be economically sensitive areas.
The economical data that was released at the end of the month of April 2019 demonstrated that the growth that was observed in the first quarter of 2019 was good and resilient. The Eurozone GDP observed an expansion by 0.4 percent quarter-on-quarters. It was considerably higher growth than what was observed by the end of 2018 when the growth and expansion stood at a mere 0.1 percent.
This news was nothing short of a breath of relief for the whole market because all the surveys were predicting, such as downbeat and gloom, that the market was down in morale. The composite PMI observed a slide and fell to 51.3 in the month of April 2019, whereas just a month ago, the numbers were at 51.6 percent.
The German Ifo climate and business index also posted negative results plummeting from 99.2 percent from 99.7 in March 2019. However, it was not all bad, and the Eurozone market did have some positive news as the market saw the unemployment rate fell to 7.7 percent.
As far as the political front is concerned, Spain saw the general election being held by the end of April 2019. The world saw the PSOE – the incumbent socialist party rose to prominence as one of the largest party. However, it was yet to be seen if they will decide to rule on their own or work with other stakeholders, i.e., political parties to form a coalition.
The UK Stock Market Review April 2019
The United Kingdom Stock market showed improvement over the period since the beginning of the year 2019, even when it lagged in the global equities.
Quite of a few heavyweights of the UK economic sector performed poorly, including mining, tobacco, and pharmaceuticals, with the former two giving back at least some of the recent gains because they were performing well in the first quarter of the year 2019.
Averting a no-deal over Brexit in the mid of April 2019 saw the UK being granted flexibility and extension to the deadline of article 50.
The most promising bit about the UK stock market is its resilience that even during all this political turmoil, the UK continued to demonstrate and enjoy economic growth and continued surprisingly positive in April 2019.
The monthly GDP release from the British Office of National Statistics revealed that the UK economy grew and expanded in February 2019 in 0.2 percent, albeit it was a subdued level of expansion in comparison to 0.5 percent that was observed in January 2019.
The revival of the manufacturing sector aided the growth in the UK economic sector in April 2019. It was reflected in the readings by Markit’s PMI surveys. In March 2019 UK manufacturing sector PMI struck 55.1 percent, which was its highest level in over a year.
However, there were rumors that the recovery seems to be driven due to stockpiling in the run-up to the original deadline for the Brexit, which was 31st March 2019.
The equity market in Japan ended with higher figures in the month of April 2019, which was 1.7 percent more than the previous months. Almost all of this economic expansion and growth happened on the first day of the month, and it all went sideways after that in a narrow range.
Despite the fact that it was the start of the reporting season for the fiscal year to the month of March, the actual flow of news was very limited throughout the month.
The volatility of the currency market in Japan was relatively low as well, thanks to Yen edging closer to value in American dollars and was slightly weaker than the US dollars for the whole month of April 2019.
The two main reasons that were stated as the factor to play a role in why the Japanese stock market displayed subdued behavior were completely unrelated to the economy. Those two reasons were the start of the new Reiwa era and the abdication of the Japanese emperor at the end of the month of April 2019.
There were no reactions from the stock market even after the policy meeting by the Bank of Japan. The reason being there were no changes made in the existing policy, and the market was already expecting that. The guidance that came out later from the central bank was clearly aimed towards investors. The idea was to move investors’ expectations more towards the monetary accommodation and its extension period.
Domestic economic data from Japan’s stock market in April 2019 was a bag of mix to describe it best. The industrial production industry depicted a sharp fall, which came to a surprise because no one was expected to plummet in such a manner.
The overall external environment of the stock market seems relaxed. It was all down to the expectations that China and Japan will reach some kind of agreement on their trade issues in the time to come.
So this was a stock market review in April 2019 for four of the biggest markets across the globe. We would again like to iterate that this piece of information is not your guide to predict market behaviors; it is just a review of what went on in the stock markets during the month of April 2019.