Global Covid-19 cases continue to rise with over 150 million cases reported at the start of May, but the race is now on to vaccinate key demographics. The International Monetary Fund revised its projections for GDP growth upwards, with the US expected to grow by 6.4% in 2021 and China by 8.4% over the same period.

The vaccine narrative is still propelling the economic recovery. The rollout has been slower than many had hoped, but the US and UK are now making strong progress. The International Monetary Fund is forecasting the world economy to expand 6.0% in 2021, up from the 5.5% it had forecast in January.

Covid-19 cases continue to build globally, with around 114 million reported cases at the start of March, but the vaccine narrative is propelling the economic recovery forward, even as some regions face logistical headwinds. Fiscal and monetary policy remain extremely accommodative and are helping households and businesses through the final stages of the pandemic.

Markets globally were strong until mid-February when rising yields spooked investors, raising the prospect of inflation. Despite the carnage in bond markets, many equity markets still delivered sound returns for the month of February.

The pandemic still looms large across the global economic landscape, with over 100 million confirmed Covid-19 cases worldwide at the start of February. The gradual rollout of vaccines is offering hope that a new normal can be achieved despite early logistical roadblocks and shortages in some regions. The Covid-19 situation in the US is improving while Europe is bringing new outbreaks under control.

December saw an end to 2020 and as we are all aware it was a unique year for so many reasons. The pandemic kick-started a rapid decline in markets followed subsequently by an unparalleled policy response from governments & central banks globally which saw declines quickly reverse as more optimism was found by investors.

MARKET OVERVIEW

November was a strong month globally for equity markets as momentum continued following the US election.

The easing of Covid-19 restrictions locally, a string of better-than-expected economic data, and positive news from vaccine trials all contributed to the rally.

MARKET OVERVIEW

A mixed month for markets globally as each market faced its own challenges. Both the Australian market as well as emerging market economies performed well in October as easing restrictions brought life to markets.

In contrast to the Australian experience, global markets were down in October due to resurgent COVID-19 cases in Europe and the US, while an uncertain presidential election added to volatility in US shares.

Australian shares followed global markets down through September as the focus shifted to the uncertain path of recovery and the ongoing public health risks due to the pandemic.

The global recovery continues to progress as economies gradually emerge from lockdown, however, significant uncertainty remains about the possible path the pandemic could take and the timeline for vaccines to be made available to the public.

August was a strong month for equities globally as markets continued their rally throughout the month.

Globally, the economic recovery continues, following severe contractions in the first half of 2020. However, growth is uneven across countries and regions, with fears of a larger second wave dampening hopes of a sustained rebound.

July was a modest month for equity markets as positive returns were enjoyed in many markets globally. Emerging markets led by China, were the stand-out performer as the country leads the economic recovery globally.

June was a mixed month for equity markets with Australian large cap stocks producing a positive return whilst smaller companies and international equities were negative in Australian terms. Emerging markets were the best performers off the back of strong Chinese equity market performance.

Despite heightened volatility and ongoing uncertainty around how governments will manage the reopening of the economies globally, equity markets enjoyed a strong month as momentum continued to build.

The world economy remains in the grip of the COVID19 shock. Governments are deploying stimulus measures, including extensive employment subsidies to retain worker-firm relationships.

In March, the coronavirus outbreak stole all the headlines, giving us almost hourly updates as it transformed our lives. We saw ‘unprecedented’ use of the word unprecedented as global economies were forced into hibernation. Inevitably, there was a serious impact on world stock markets, which have suffered their worst quarter since 1987.

The focus over the past month has been almost entirely on the Coronavirus outbreak. New cases of the virus began to appear globally in February which has spread fear both across the globe and investment markets. Although markets were resilient for most of the month there were sharp falls towards the end of the month.

Following a very strong 2019, Australian markets showed no signs of slowing down throughout January as the market posted its strongest return since February 2018.

There were mixed results for markets in December as markets locally took a dive whilst globally, they powered ahead continuing their positive momentum. This capped off a positive year for equity markets with many indices posting impressive returns for the year.

In line with many of the market summaries this year, movements in markets for November were largely inspired by combat associated with the ongoing trade dispute between the US and China.

It has been a few months in waiting but November did bring back a resurgence in my favourite genre of Trump tweets, which only occur when markets reach all time highs. We saw this a number of times throughout the month as markets ventured into uncharted territory