Market Updates

Clearly, the continued easing of COVID-19 lockdowns was in focus, with a close eye on infection rates. For the most part, Europe tends to be fairing relatively well, whilst the US rate is sharply on the rise, seeing record one-day increases in cases.

Equity Markets Shake off Concerns. Fiscal and Monetary Stimulus Supports Global Economy. Some Upside Data Surprises. This market update tackles the above updates and much more.

Europe’s policy response to the virus shock was slow to get going – but an impressive array of fiscal and monetary measures is getting into place to bridge the economy through the shock. The euro area has also had relative success in tamping virus growth, positioning it well for reopening its economy.

Public markets were at the center of market action as risk assets sold off amid the spreading pandemic and then rebounded amid an overwhelming policy response. We now see opportunities in slower-moving, less liquid private markets and expect them to offer exposure to accelerating structural trends.

Last week saw global equity markets pause for breath, with most major indices declining when faced with a sobering economic outlook from the US Federal Reserve (Fed) and fears of a second wave of COVID-19 infections.

Macroeconomic policy has gone through a needed revolution to cushion the coronavirus shock. Yet this policy shift has opened the door to unprecedented government intervention in markets and companies.

Global equity markets were buoyant last week, as news of further economic stimulus in Europe, better-than-expected US employment data and a continues easing of lock-down measures all helped boost market sentiment.

China’s economy – the first to enter lockdowns and the first to emerge from them – is restarting. We see the economy likely returning to near-trend growth by late 2020, supported by policy stimulus, especially on the monetary front.

Despite the month-end selloff on Friday, global equities put in a strong performance last week. Markets in the Asia Pacific (APAC) region were also broadly higher, with Japan the clear outperformer.

The coronavirus shock is reinforcing structural trends and introducing new ones, such as the policy revolution, surging sustainability wave and accelerating deglobalization. In many ways, the future is arriving fast.