Lonsec Market Update

Market Update – May 2021

This month:

  • Investors extended expectations of accommodative monetary and fiscal policies following signs of a slowdown in the US recovery.
  • US President Biden is believed to be setting a new vaccination goal to have the first dose delivered to 70% of adults by July 4.
  • Europe has enjoyed better than expected economic data and a decline in reported Covid-19 cases recently as countries push ahead with vaccine rollouts.
  • New Zealand halted quarantine-free travel with Australia while New South Wales investigates the origins of the two locally acquired Covid-19 cases.
  • The RBA kept the cash rate on hold at 0.1% as expected and increased its 2021 GDP forecast from 3.50% to 4.75%, with 3.50% growth expected in 2022.

Read the full Market Update prepared by Lonsec here.

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