Week ending 17th April 2026.

As you can see from the accompanying table it was another positive week for global financial markets.

Year to date, performance across equities has been strong, with markets now having largely recovered the losses seen in March during the escalation of the U.S.–Iran conflict. In the U.S. the S&P 500 reached a new all-time high this week, highlighting how quickly investor sentiment can improve once uncertainty begins to recede.

This serves as a timely reminder that accurately timing market turning points is extremely difficult – reinforcing the value of remaining invested rather than attempting to anticipate short-term highs and lows.

With a tentative ceasefire in place, investor focus has shifted back to fundamentals, with corporate earnings taking centre stage. Earnings season has provided a tailwind for markets, particularly in the U.S., where large financial institutions delivered strong first‑quarter results. Elevated market volatility boosted trading activity, supporting revenues across the sector.

Goldman Sachs reported a solid rise in profits, while Morgan Stanley, Citigroup, Wells Fargo and Bank of America all exceeded expectations, marking a broadly positive reporting period for U.S. banks.

Technology shares, particularly semiconductors, continued to perform well, highlighting continued enthusiasm for AI‑related technologies. Nvidia, AMD, and Broadcom extended recent gains on sustained demand linked to artificial intelligence and data infrastructure. While Taiwan Semiconductor experienced some short‑term share price weakness following its results, the broader sector outlook remains constructive.

In the UK, economic data surprised to the upside. The economy grew by 0.5% in February 2026, comfortably ahead of forecasts. The expansion was driven by improvements across services and manufacturing, alongside a recovery in construction.

Recent data from China painted a mixed but broadly resilient picture. The economy expanded by 5.0% year-on-year in the first quarter of 2026, exceeding expectations and marking an improvement on the previous quarter. Growth has been supported in part by solid export activity, although there are early indications that momentum is moderating.

Industrial production increased by 5.7% in March, slightly ahead of forecasts but below earlier readings, while retail sales growth slowed more noticeably and came in below expectations.

Policymakers continue to monitor the potential impact of geopolitical tensions, though the economy has so far demonstrated an ability to absorb external shocks, aided by energy security and policy support.

Developments in the Middle East remained influential but moved in a more constructive direction.

Reports of a ceasefire agreement between Israel and Lebanon, alongside confirmation on Friday from Iran that shipping routes through the Strait of Hormuz would remain open during the ceasefire period, helped to ease market concerns.

Oil prices responded accordingly. Brent crude, which had spiked sharply during the height of the conflict to $118 per barrel, declined by around 14% over the week to approximately $88 per barrel.

However, despite the Iranian government stating that the strait remains open, Iran’s Islamic Revolutionary Guard Corps Navy said over the weekend that the Strait of Hormuz will remain closed until the U.S. blockade on Iranian ports is lifted. Heading into next week, this is likely to result in a softer market open. As talks with the U.S. continue, similar developments may occur, leading to periodic bouts of market volatility.

Coming up next week; UK unemployment, inflation and retail sales. U.S. retail sales, euro area consumer confidence. Corporate earnings will remain in focus with Amazon, Intel, Tesla reporting. Investors will learn more about Trump’s pick to lead the Federal Reserve, Kevin Warsh, appears before Congress for his confirmation hearing on Tuesday.

Kate Mimnagh, Portfolio Economist