Global markets experienced a sharp reversal in April 2026, with strong positive returns across most equity markets following the broad risk-off environment observed in March. The speed and magnitude of the rebound highlight how quickly market sentiment can shift, reinforcing the challenge of timing short-term market movements.
Equity markets delivered strong gains across regions. The S&P/TSX Composite returned 3.8% for the month. The S&P 500 returned 7.8%, supported by stronger-than-expected corporate earnings, particularly within large technology-oriented companies. International developed equities led performance, with the MSCI EAFE returning 11.8%, reflecting a broad-based recovery across European and Asian markets. Emerging markets also posted solid gains, with the MSCI Emerging Markets Index returning 4.7%.
Small-cap equities outperformed large caps during the month, with the Russell 2000 returning 9.4%, indicating a rotation toward higher-beta segments of the market as investor risk appetite improved.
The primary driver of market performance in April was a shift in sentiment rather than a material change in underlying macroeconomic conditions. Following the geopolitical-driven selloff in March, markets began to stabilize as concerns around further escalation moderated. At the same time, corporate earnings results were generally resilient, helping investors look through ongoing uncertainties related to inflation, interest rates, and global growth.
Fixed income markets were mixed. The FTSE Canada Universe Bond Index returned 0.1%, while the Bloomberg Global Aggregate Bond Index declined -1.3%. Conflicting market forces kept benchmark yields trading in a narrow range.
From a currency perspective, the Canadian dollar’s 2.5% appreciation against the U.S. dollar created a notable headwind for domestic investors. While this move diluted the gains of unhedged global equities, our approximate 50% USD hedge successfully recaptured half of that currency-driven slippage, preserving a larger portion of the month's underlying market growth.
Against this backdrop, the Balanced Fund returned 3.20% for the month. The Equity Fund returned 6.45%, while the Bond Fund returned 0.36%. The Money Market Fund returned 0.20%.
Disclaimer
The information contained in this market summary is provided for general informational purposes only and is intended to help CSS Pension Plan members understand recent market conditions and the performance of CSS funds. It does not constitute investment advice, and should not be relied upon as the basis for any investment decision.
As a defined contribution plan member, the value of your account and the appropriateness of any particular investment option will depend on your individual financial situation, retirement goals, time horizon, and risk tolerance. Past fund performance is not indicative of future results.
Nothing in this summary should be construed as a recommendation to buy, sell, or hold any investment, or to change your current contribution or investment directions.
If you have questions about your personal account or would like to discuss your individual circumstances, we encourage you to contact a CSS Retirement and Pension Advisor. Our advisors are available to provide guidance tailored to your specific situation.