In the July 2020 edition of the Market Update:
- Since the initial outbreak, COVID-19 has spread to over 210 countries, and estimates indicate it could trim global economic growth by between 3.0% to 6.0% in 2020.
- Cyclical indicators including PMIs and unemployment rates remain weak but are improving, bolstering the market’s hopes of a speedy recovery.
- Some countries and US states reversed course in late June, reimposing social distancing measures and closing businesses to prevent a second wave of infections.
- Market volatility declined while large raisings of debt and equity have helped to strengthen balance sheets during this period of uncertainty.
- The Reserve Bank of Australia kept rates on hold at 0.25% at its July meeting and is prepared to scale up bond purchases if needed.