COVID-19 has severely tested the global economy and markets in 2020. Aided by unprecedented monetary and fiscal stimulus, markets responded with surprising resilience beginning in late March and throughout the second quarter. The market recovery continued to gather momentum in the third quarter as economic growth rebounded strongly across the globe amid relaxation in COVID-19-related lockdowns, fiscal and monetary policy support, and the release of pent-up demand. Though infection rates were re-surging in some developed economies, the worst seemed to be behind us at that point as key vaccine trials continued to make quick progress.
At the end of the third quarter, however, growth momentum began to decelerate as fiscal support waned and services growth remained restricted; investors worried about stretching valuations, rising infection rates, and uncertainty associated with the US elections. This bout of negativity proved to be short-lived though. As we turned the corner on the US election, developments on a number of fronts, starting with improving prospects for fiscal stimulus, positive earnings sentiment, and reports of 90% efficacy for the Pfizer vaccine, bolstered investors’ outlook on risky assets and propelled global equities to a strong post-election rally.
This website is intended for persons resident in Australia. State Street Global Advisors, Australia Services Limited ABN 16 108 671 441, AFSL Number 274900 ("SSGA, ASL") is the product issuer. State Street Global Advisors, Australia, Limited (AFSL Number 238276, ABN 42 003 914 225) (“SSGA Australia”) is the Investment Manager. The material on this website is general information only and does not take into account your individual objectives, financial situation or needs. You should read and consider the Product Disclosure Statement (PDS) for the relevant product carefully before making an investment decision and consult your financial adviser. You can access our PDS online or by calling us. The offer made in our PDS is available to persons receiving the PDS within Australia and applications from outside Australia will not be accepted. Past performance is not a reliable indicator of future performance. Investing entails risks and there can be no assurance that State Street Global Advisors will achieve profits or avoid incurring losses.
Investing involves risk including the risk of loss of principal. This material should not be considered a solicitation to apply for interests in the Funds and investors should obtain independent financial and other professional advice before making investment decisions. There is no representation or warranty as to the currency or accuracy of, nor liability for, decisions based on such information. Performance quoted represents past performance, which is not a reliable indicator of future results. Investment return and principal value will fluctuate, so you may have a gain or loss when shares are sold. Current performance may be higher or lower than that quoted.
Images of NYSE Group, Inc. are used with permission of NYSE Group, Inc. Neither NYSE Group, Inc. nor its affiliated companies sponsor, approve of or endorse the contents of this program. Neither NYSE Group, Inc. nor its affiliated companies recommend or make any representation as to possible benefits from any securities or investments.