April saw a continuation in the gradual recovery of equity markets since the February lows. In a similar tone to previous months, the actions of central banks have been a key driver of the global financial markets.

Global markets recovered in March from the trough in mid-February. Similar to the previous several months, the actions of central banks and the swing in oil prices have been driving the global financial markets.

February was a rollercoaster ride for financial markets. Australian equities fell by 20% since their peak in April last year however recovered some of the losses by month end. Equity markets overseas also suffered and recovered. What drove the volatility? We believe the turbulence was driven by several issues: oil price, financials, US and Chinese growth.

The New Year has begun with widespread volatility in global markets, with equities posting steep negative returns in January. The main factors driving the market’s volatility are events in China, oil price collapse and central bank policies.

At last, we have lift off! The US Federal Reserve’s Federal Open Market Committee (FOMC) finally raised its official interest rate from its 0-0.25% target range by 0.25% to a new target range of 0.25%-0.50% at its last meeting of the calendar year. This comes nine years and seven months since the US Federal Reserve last raised the Federal Funds Rate (FFR).