Weekly Market Recap

Australia

25/01/2021

Week in review

Australian consumer inflation expectation decreased to 3.4%
Australian unemployment rate decreased to 6.6%
U.S. Markit manufacturing PMI increased to 59.1

Week ahead

Australia CPI q/q
U.S. Fed funds rate
U.S. GDP

Thought of the week

The world has seen good progress on the vaccine front. Governments are implementing strategies to vaccinate the most vulnerable first, such as the elderly and those on the front lines, which should reduce mortality from the virus, ease the burden on medical workers and make governments more comfortable with relaxing restrictions. As developed markets have faced higher infection numbers, they must focus on vaccinating quickly for their economies to return to normality. Newly elected President Biden has promised 100 million doses of the vaccine to Americans in his first 100 days in office. North Asia, however, has been able to keep infection numbers lower through effective testing, contact tracing and strict border controls, and therefore can afford to be more cautious in its vaccine rollout. For investors, a rebound in developed market activity should support equities, particularly the 2020 laggards.

Daily Vaccine doses
7-day moving average, per 1000 people

Source: Our World in Data, J.P. Morgan Asset Management. Daily doses are counted as single doses and may not equal the total number of people vaccinated. Data reflect most recently available as of 19/01/21.
All returns in local currency unless otherwise stated.
Equity price levels and returns: Levels are prices and returns represent total returns for stated period.
Bond yields and returns: Yields are yield to maturity for government bonds and yield to worst for corporate bonds. All returns represent total returns. AusBond Comp is the AusBond Composite 0+ Yr, AusBond IG is the AusBond Credit 0+ Yr both provided by Bloomberg.
Currencies: All cross rates are against the Australian dollar. An appreciation of the foreign currency against the Australian dollar would be positive and a depreciation of the foreign currency against the Australian dollar would be negative.

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Featured Funds

JPMorgan Global Strategic Bond Fund

To achieve a return in excess of the Bloomberg AusBond Bank Bill Index by exploiting investment opportunities in, amongst others, the debt and currency markets, using financial derivatives instruments where appropriate.

Fund details

JPMorgan Global Macro Opportunities Fund

To achieve capital appreciation in excess of its cash benchmark by investing primarily in securities, globally, using financial derivative instruments where appropriate.

Fund details

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.

Fund details

Diversification does not guarantee positive returns or eliminate risk of loss.

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