Key Highlights for April 2025
- Global financial market volatility surged in April as investors priced in the potential impacts of so-called reciprocal tariffs revealed by the United States, which significantly raised import levies on virtually all trading partners. However, performance for the entire month was largely muted, as markets mostly recovered after the United States lowered these tariffs to a 10% baseline rate for 90 days.
- All told, global equities declined just 0.4%, but a sharp US dollar depreciation meant they gained nearly 1% in USD terms. Chinese equities posted among the steepest declines, having been excluded from the reciprocal tariff reprieve amid escalating tensions with the United States.
- Currency dynamics had an outsized impact on realized performance. Developed markets currencies surged vis-à-vis the US dollar, leading to strong gains across asset classes when converted to USD terms versus weaker performance in local currency terms.
- Gold prices surged to fresh all-time highs, briefly eclipsing $3,500/troy ounce amid the volatility.