Equities: Policy signals and volatility context – HSBC

HSBC Asset Management notes that upcoming meetings of the Federal Reserve (Fed), European Central Bank (ECB and Bank of England (BoE) are unlikely to deliver policy changes, but guidance on inflation and growth will be closely watched. Global equities have seen modest declines as Oil rebounds and US Treasury yields rise. The report stresses that equity volatility in 2026 remains historically normal despite geopolitical shocks.

Central banks, yields and equity swings

"This week’s meetings of the Federal Reserve (Fed), European Central Bank (ECB) and Bank of England (BoE) are likely to pass without any policy moves. But with the outlook still uncertain, investors will be listening carefully for clues on how policymakers are weighing up inflation and growth risks, although the central banks are likely to try and keep their options open."

"Global equities posted modest declines as oil prices rebounded amid ongoing geopolitical concerns. In developed markets, the S&P 500 pulled back from a new high despite solid Q1 US earnings and continued AI optimism, while tech shares led the gains in Nikkei 225, which also hit a fresh record."

"Markets feel chaotic in 2026, but equity volatility is actually… normal. Global stock market volatility typically sits in the mid-teens, which is where it is today."

"In summary, volatility is the price of admission in 2026. Staying disciplined, diversified, and avoiding the behavioural traps remain the investor’s edge."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)