April 2026 Market Wrap

Hopes for a resolution to the conflict in the Middle East helped stabilise global investment markets in April. In Australia, the S&P/ASX 200 Index rose 2.2% over the month to close at 8,665.8 points.

The Australian dollar also strengthened, rising 4.5% to around USD 0.72. The Reserve Bank of Australia did not meet during April, however market expectations remain that interest rates could stay higher for longer given ongoing inflationary pressures.

Global share markets recorded solid gains in April, although returns varied by region. The chart below shows the comparative monthly returns between the Australian and US share market indices over the month.

Source: tradingeconomics.com

For the month of April, the US S&P 500 increased by 10.4%, the UK FTSE 100 rose 2.0%, Japan’s Nikkei gained 16.1% and Hong Kong’s Hang Seng Index advanced 4.0%. Notably, the April result for the S&P 500 represents its strongest monthly gain in more than five years, providing welcome relief for investors after recent volatility.

Despite this improvement in market sentiment, developments in the Middle East remain fluid. The ceasefire agreed between the United States and Iran has provided short‑term breathing space rather than a durable resolution, and its longevity remains uncertain as negotiations continue. As a result, we expect market volatility may persist in the near term.

Against this global backdrop, attention domestically is now turning to the Australian Federal Budget, to be delivered on 12 May. In addition to cost‑of‑living measures, the Budget is expected to address broader tax reform, including continued discussion around potential changes to Capital Gains Tax (CGT) concessions. While no changes have been confirmed, any adjustment to CGT settings could have implications for investment structures, property holdings and long‑term financial planning. Already legislated measures, including the introduction of payday super from 1 July 2026, are set to proceed.

We will review the full implications of the Federal Budget following its release and provide a further update on any announcements relevant from a financial planning perspective.

This article is general information only and is not intended to be a recommendation.  We strongly recommend you seek advice from your financial adviser as to whether this information is appropriate to your needs, financial situation, and investment objectives.