European equity markets concluded April on a strong note, with the pan-European STOXX 600 and the German DAX both recording their best monthly performances since January 2025 [1]. Italian stocks notably outperformed, surging 8.88% in April, marking their best month since January 2023 [1]. This robust performance sets a positive tone for the start of May, although trading activity is muted due to widespread market closures for the Labour Day holiday across Asia and most of Europe, with only U.K. stocks open for trading [1].
On the monetary policy front, both the European Central Bank (ECB) and the Bank of England (BOE) held interest rates steady as expected [1]. However, market participants are increasingly anticipating rate hikes in the near future, with traders pricing in a 75% probability of an ECB rate hike in June and more than a 50% chance of a BOE hike, according to LSEG data [1]. BOE Governor Andrew Bailey highlighted the challenging economic environment, describing it as the “most difficult combination” of effects, particularly as the U.K. grapples with the aftermath of an energy price shock [1].
In the U.S., Apple exceeded revenue and earnings expectations for its fiscal second quarter and provided a better-than-expected revenue forecast for the current period, rounding out a strong earnings season for major technology companies [1].
Looking ahead, OPEC+ is scheduled to meet for the first time without the UAE on Sunday, which could have implications for global energy markets [1].
CONCLUSION
European markets ended April with significant gains, led by Italian equities and strong performances in the STOXX 600 and DAX. While central banks held rates steady, expectations for future hikes are rising, and market sentiment remains positive heading into May. The muted trading due to holidays does not detract from the underlying strength observed in the previous month.