Market Update - August 2020

FROM THE GLOBAL ASSET ALLOCATION TEAM 
- By Candice Bangsund, Vice President and Portfolio Manager, Global Asset Allocation

In July, risk appetite was underpinned by further signs of a revival in global growth, the solid start to second quarter earnings season, and the abundance of fiscal and monetary stimulus – which when taken together overshadowed pessimism regarding the latest resurgence in Covid-19 cases. Encouragingly, European Union leaders approved a historic EUR750 billion crisis package in July, while US lawmakers are currently debating another $1 trillion in fiscal support to guide the world’s largest economy back to health. Meanwhile, positive developments on the medical front also emboldened sentiment, with US infectious disease expert Anthony Fauci saying that its “reasonable” to expect a safe and effective vaccine by year-end.