Weekly Market Recap
Week in review
- Eurozone and U.S. PMI manufacturing rise to 46.9 and 49.6
- Eurozone consumer confidence rises to -14.7
- BNZ holds rates at 0.25%
- Australia private sector credit
- China PMI manufacturing
- U.S. labour market report
Thought of the week
Are equities becoming fatigued? After running so hard this quarter it may not be surprising to see them tire given how the market has responded to the pandemic compared to the economy. This week’s chart illustrates the deviation between employment in the U.S. and the S&P 500. Central banks and policy makers have a lot to do with the gap this time around. But investors are starting to weigh up the risks to the recovery from a potential second wave of COVID infections and whether the market has simply gotten too far head of the economic fundamentals and earnings outlook. We remain relatively constructive on the economic recovery over the second half of the year and the outlook for equities, however, the risks are clear and it will not be a smooth ride.
The market is not the economy
JPMorgan Global Research Enhanced Index Equity Fund
To achieve a long-term return in excess of the benchmark by investing primarily in a portfolio of companies, globally; the risk characteristics of the portfolio of securities held by the Sub-Fund will resemble the risk characteristics of the portfolio of securities held in the benchmark.