Update: November 2020 – A Market Overview
The relatively muted gains in most equity markets in recent weeks reflects how positive news about potential COVID-19 vaccines has been partly offset by the renewed surge of infections in many advanced economies. Nevertheless, the growing prospect of an effective vaccine being rolled-out in 2021 poses an upside risk to growth in the second half of next year.
The US economy initially recovered rapidly in Q3, posting GDP growth of 33.1% annualised. However, the recent surge in coronavirus cases has prompted a growing number of states to impose renewed restrictions on activity. This will weigh on the economic recovery in the short-term.