Omnis Weekly Market Update – 07 April 2026

 Global equities were mixed for the week. Comments from US President Donald Trump saw US and European equities rebound sharply on hopes for a near-term resolution in the Middle East, meanwhile Chinese and Japanese equities lagged.

 

Last week’s performance – major stock markets 

 

S&P 500	3.36%
Nikkei 225	-0.47%
CSI 300	-1.37%
Euro Stoxx 50	3.4%
FTSE 100	4.7%

 

Commentary

 

US: Equities rally sharply higher on hopes of de-escalation in the Middle East
US equities finished the shortened week higher despite ongoing geopolitical concerns. The Nasdaq recorded its strongest week since November, while the S&P 500 rose strongly also. Smaller companies also advanced. Markets rebounded midweek as comments from President Trump raised hopes of easing conflict in the Middle East, but gains were tested after a later speech offered no clear de-escalation timeline, lifting oil prices and briefly pressuring equities before indexes recovered to finish the week higher. Economic data was mixed. Private payroll growth beat expectations, jobless claims declined, but job openings and hiring slowed. Consumer confidence rose modestly and manufacturing activity expanded for a third month, although employment continued to contract and price pressures increased.

Japan: Energy security concerns drive Japanese equities lower
Japanese equities declined, reflecting sensitivity to rising oil prices and renewed geopolitical uncertainty. The Nikkei fell 1.7 percent as concerns grew over energy security and shipping through the Strait of Hormuz. Markets increasingly priced in a possible Bank of Japan rate rise in April, with bond yields moving higher. The yen strengthened slightly amid speculation of potential currency intervention. Inflation data in Tokyo came in marginally softer than expected, while industrial production met forecasts but retail sales disappointed.

China: Equities mixed as investors balance improving domestic data against broader geopolitical risk
Chinese markets were mixed as improving domestic data worked to offset external risks. Purchasing Manager Index readings improved across both official and private surveys, suggesting stabilising activity, though rising input costs pointed to margin pressures. China and Pakistan jointly called for a ceasefire in the Middle East, emphasising protection of energy infrastructure and shipping lanes. Separately, China removed export tax rebates on several clean energy products from April, likely increasing cost pressures and accelerating consolidation within affected industries.

Europe: Stocks rise sharply despite inflation reaching the highest level since early 2025

European equities rallied strongly as hopes grew that the Middle East conflict may be contained. Germany’s DAX added 3.89%, Italy’s FTSE MIB rose 5.18%, and France’s CAC 40 Index climbed 3.48%. Eurozone inflation rose to 2.5 percent, the highest level since early 2025, driven by a sharp increase in energy prices of 4.9%. Growth expectations weakened in Germany, with leading institutes cutting the 2026 GDP forecast to 0.6 percent. Manufacturing diverged across the region, contracting in Spain but strengthening meaningfully in Sweden. Swiss retail sales remained positive, supported by non-food spending.

UK: Equities bounce sharply on potential for de-escalating tensions in the Middle East
UK equities rallied strongly on hopes for a de-escalation of tensions in the Middle East. The UK remains heavily leveraged to changes in energy prices, hence expectations for easing tensions in the Middle East was supportive of UK equities. To economic data, manufacturing momentum softened, with Purchasing Manager Index (PMI) data revised down to 51.0 and output falling for the first time in six months, although new orders continued to improve. PMI data above 50 highlights expansionary activity relative to the previous month. House price growth showed renewed strength, rising 2.2 percent year on year in March, the strongest pace since last summer.