BT Investment Solutions’ (BTIS) monthly market commentary provides timely updates on market movements, addressing key economic events and their impact on portfolios.
FY 2020/21 began as COVID-19 continued to rapidly spread throughout the world, severely impacting global economies. This unpredictable pandemic resulted in declining consumer spending and sentiment, culminating in the contraction of many major economies. However, by the end of the calendar year, there were signs of economic recovery following the successful development and distribution of COVID-19 vaccines.
With the continuing outbreak of COVID-19 in Melbourne and by the end of the month, Sydney was feeling the full force of the Delta variant. The resulting three-week lockdown has seen considerable pressure being placed on the domestic economy.
Over the course of May markets saw global inflation fears catalyse volatility. While the high vaccination rates across Europe and the US led to increased consumer sentiment, a rapidly deteriorating outbreak of COVID-19 throughout India sent shockwaves around the world.
April saw life in Europe, the UK and the United States slowly return back to what could be described as the new Covid-19 normal.
As the first quarter of the year ended, the impact of the COVID-19 pandemic on risk markets almost seemed non-existent. Over March we saw US markets return to all-time highs, further upgrades to the global economic outlook, additional US stimulus packages and central banks reaffirming monetary policy and inflation expectations.
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This document has been created by Westpac Financial Services Limited (ABN 20 000 241 127, AFSL 233716). It provides an overview or summary only and it should not be considered a comprehensive statement on any matter or relied upon as such. This information has been prepared without taking account of your objectives, financial situation or needs. Because of this, you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation and needs. Projections given above are predicative in character. Whilst every effort has been taken to ensure that the assumptions on which the projections are based are reasonable, the projections may be based on incorrect assumptions or may not take into account known or unknown risks and uncertainties. The results ultimately achieved may differ materially from these projections. This document may contain material provided by third parties derived from sources believed to be accurate at its issue date. While such material is published with necessary permission, Westpac Financial Services Limited does not accept any responsibility for the accuracy or completeness of, or endorses any such material. Except where contrary to law, Westpac Financial Services Limited intends by this notice to exclude liability for this material.
Information current as at 15 June 2020. © Westpac Financial Services Limited 2020.