Low interest rates, subdued inflation, positive economic data surprises out of the major economies and ongoing stimulus continued to support global markets during the quarter. The impact of and narrative around the COVID-19 pandemic continues to influence short-term confidence. Global risk appetite continues to oscillate around the progress being reported in global vaccine trials, negative real yields, US-China tensions, the run-up to US elections in November and the quantum of further stimulus required to extend and/or sustain the current global recovery.
SA entered this quarter under the cosh and it got worse! Lingering global trade tensions, accompanied by the realisation that Covid-19 was spreading rapidly, did not help as our sovereign rating was junked and we headed for lock-down towards the end of the quarter.
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