Lonsec Market Update

Market Update – February 2021

This month:

  • Macroeconomic indicators remain robust, but vaccine supply delays in some regions and the emergence of new Covid-19 strains have dampened sentiment.
  • The US congress is negotiating President Biden’s proposed US$1.9 trillion stimulus package, which includes US$1,400 payments to low-income workers.
  • The EU has imposed tougher restrictions on visitors and the UK will introduce tighter border controls to prevent the spread of new Covid-19 strains.
  • The Biden administration will seek to repair relations with China but will face immediate challenges as China steps up military activity around Taiwan.
  • The RBA left the cash rate on hold at 0.1% and announced it will buy an additional $100 billion of Australian government bonds before ceasing purchases in April.

Read the full Market Update prepared by Lonsec here.

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