The week in review

The week of 10 April 2023 was a better week for markets as softer than expected inflation reports in the US and signs of slowing growth raised investor hopes of a pause in rate hikes.
Published 18 April
4 mins

What’s happened in markets?

FTSE All Share1.863.110.856.244.6813.895.03
Euro Stoxx 501.915.436.3716.5118.4018.048.35
S&P 5000.825.703.918.29-4.2015.0911.18
Japan Topix2.714.757.247.888.5114.765.63
MSCI Asia Pac.0.855.84-2.704.91-5.955.680.28
MSCI Emerg. Mkts.1.396.18-2.395.14-7.546.58-0.35
Jo’burg All Shares2.406.400.779.4812.1321.2310.96
UK Gov’t Bonds-1.97-0.58-1.471.00-14.81-9.87-3.06
US Gov’t Bonds-
Global Corp. Bonds-0.441.680.323.27-2.23-1.381.48
Emerg. Mkt. Local0.563.260.815.511.200.55-0.98
Figures in the respective local currencies as at the end of trading on 14/4/2023.

In the US, headline inflation fell to its lowest since May 2021 as the consumer price index (CPI) for March rose by only 0.1%, coming in below expectations at 5% year on year. This was put down to lower energy prices and a decline in the housing component, as monthly rental inflation fell to a one-year low. However, the core CPI (which excludes more volatile food and energy) remained resilient and in line with expectations up 0.4% to 5.6% year on year, suggesting prices for some goods and services are still stubbornly high. Although there was more encouraging news on inflation on the business side as both the headline and core producer price index (PPI) surprised by coming in below expectations at 2.7% (against 3.0% expected) and 3.6% (against 3.8%) respectively. The March jobs report showed US jobs growth slowed in March but remains tight. Weekly initial jobless claims came in above expectations at 239,000, rising for the first time in three weeks. Minutes published from the Fed’s March meeting showed that policymakers had lowered their expectations for rate hikes this year following the recent banking turmoil. They also predicted a mild recession later in 2023.

In the UK, monthly gross domestic product (GDP) growth came in below expectations, remaining flat in February as industrial action continued to weigh on public services. This followed a revised figure of 0.4% growth for January, which means the UK economy has finally risen above its pre-pandemic levels.

In the eurozone, seasonally adjusted industrial production was stronger than expected, up 1.5% in February and 2.0% year on year.

On the corporate front, JPMorgan Chase, Citigroup and Wells Fargo all reported better than expected quarterly earnings results – helped by higher interest rates and clients moving deposits from smaller, regional banks following last month’s collapse of Silicon Valley Bank and Signature Bank. Though they warned of ‘storm clouds’ remaining for the year ahead as all increased their provision for loan losses.

In other news, the IMF warned of a ‘hard landing’ for the global economy if inflation persists and keeps interest rates higher for longer. It called on central banks and governments to keep working to bring inflation down.

It was a positive week in markets as softer than expected inflation meant investors dialled back their expectations for Fed rate increases, which was encouraging for risk sentiment. Equities performed well over the last 30 days with developed markets (+7.3%) outperforming emerging markets (+6.0%). In terms of style, the more interest rate sensitive growth (+7.7%) continued to outperform value (+6.8%), while large capitalisation stocks (+7.5%) led small caps (+4.8%) over the same period. Energy (+13.2%) was the best performing sector over the last 30 days while real estate (+1.0%) was the worst.

In fixed income, falling US yields over this year have translated to better returns for longer dated government bonds.

Another asset class that benefited from the prospect of a pause in the Fed’s rate hikes was gold which climbed to its highest level in a year. Oil (+22.3%) also continued its upward trend, particularly following the decision of the OPEC+ group to cut output.

In terms of currencies, the euro was particularly strong against the US dollar and closed above US$1.10 for the first time since April 2022 on the back of growing expectations that the European Central Bank might pursue another 50 basis point hike at its next meeting in May.




UK GDP (QoQ)0.1
UK PMI52.252.2
UK CPI (YoY)10.49.8
EU GDP (QoQ)0.0
EU PMI53.753.7
EU CPI (YoY)6.96.9
US GDP (QoQ)2.62.0
US PMI51.2
US CPI (YoY)5.0

What’s happened in portfolios?

We have seen pleasing performance among our equity managers as a result of our longer duration positioning in quality growth stocks. Fundsmith Equity, which has the strongest growth bias, stood out, while Morgan Stanley Global Brands and Veritas Global Focus also outperformed due to their quality bias. Dodge & Cox Global Stock kept pace, despite its value style, thanks to holdings in communication services.

In fixed income, the continued fall in yields has benefited our longer dated funds both in the investment grade and government bonds space so far this month.

We continue to like real assets and one area that has been really strong for us in 2022 and also longer term is renewable energy. Greencoat UK Wind (UKW) has been a consistent performer and announced its latest acquisition of a 42MW wind farm in Scotland for £50 million, boosting generation capacity further. This new asset benefits from a 10-year fixed price power purchase agreement  (PPA) with BT for 80% of its output.

In our alternative strategies, Gresham House Energy Storage (GRID) published its full year results for 2022. Net asset value (NAV) total return was up a significant 39% and dividend cover is a very positive 1.3 times. The fund has also increased transparency for investors on revenue assumptions and leverage which was well received by the market.

What's happening this week?

19 April • EU Consumer Price Index (Mar) | 19 April • UK Consumer Price Index (Mar) | 20 April • US Initial Jobless Claims

Clients of Nedbank Private Wealth can get in touch with their private banker directly to understand how their portfolios are responding to market events, or call +44 (0)1624 645000 to speak to our client services team.

If you would like to find out more about how we manage clients’ investments, please contact us on the same number as above. Or you can get in touch using the links to the forms towards the end of this page.

Sources: Nedbank Private Wealth and (1) Bloomberg, (2) Reuters, (3) Financial Times, (4) Office for National Statistics, (5) US Bureau of Labor Statistics and (6) Eurostat

The value of investments can fall, as well as rise, and you might not get back the original amount invested. Exchange rate changes affect the value of investments. Past performance is not necessarily a guide to future returns. Any individual investment or security mentioned may be included in clients’ portfolios and is referenced for illustrative purposes only, not as a recommendation, not least as it may not be suitable. You should always seek professional advice before making any investment decisions.

Access more of our insights


The week in review

23 May

   |   4 mins

During the week of 15 May 2023, investor sentiment was buoyed by a more positive tone in the US debt ceiling negotiations. But continued tightness in labour markets prompted more hawkish comments from central banks on their determination to reduce inflation.


The week in review

16 May

   |   4 mins

The week of 8 May 2023 was a mixed week for markets. US equities and bonds advanced as investor confidence grew following better than expected inflation data. However, weaker data releases renewed fears of a slowdown and led to a risk-off sentiment.


April's investment market commentary

12 May

   |   3 mins

April was a quieter month for markets as attention focused on further rate increases, given stronger economic data and signs of more persistent inflation. Simon Watts explains.


Quarterly Investment Report

28 Apr

   |   60 mins

During the programme, we covered an overview of the markets and how we are managing our clients' investments, how we help our clients fulfil their borrowing needs, and how to avoid emotions getting in the way of your plans.

Get in touch

If you are interested in becoming a client, please complete the form via the ‘become a client’ button below. Alternatively, if you are already a client, or if you have a question about how we help clients in particular circumstances, please use the ‘contact us’ button.


We will get back to you as soon as we can during office hours, which are Monday to Friday, 8am to 8pm (UK time), except for UK public holidays.

Become a Client

Thank you for your interest in Nedbank Private Wealth. Please call us on +44 (0)1624 645000 or complete the requested information and one of our team will get back to you soon. We look forward to speaking with you.  Please note: If you are an EU resident, we are unfortunately unable to offer our services to you at present.

* Required fields

Contact Us

Please call us today on +44 (0)1624 645000. Our office hours are weekdays from 8am to 8pm (UK time), except for UK public holidays.


Or please complete and submit the below form and one of the team will get back to you as requested.

* Required fields

Search suggestions