April is known for its showers, warming trends and sudden changes in climate. This April, it has been missiles and attack drones that made up the showers, prices that have stayed warm and the investment climate that has shifted abruptly.
There were some unwelcome additions to the “higher for longer” list during the first week of April as geopolitical risks and energy prices joined US interest rates on the tally sheet. Fears that Iran will become directly involved in Israel’s war with Hamas in Gaza and Ukraine’s drone campaign against Russian refineries pushed oil prices towards a six-month high.
Although Switzerland’s central bank kicked off its latest easing cycle in late March, the second quarter started with investors digesting an above‑target reading for the Federal Reserve’s preferred price gauge and continued evidence of strong US economic growth.