Weekly Market Recap
Asia Pacific
29/06/2020
Week in review
Week ahead
- 30/6 – JP – Unemployment
- 1/7 – CN – Markit/Caixinmanu. PMI
- 2/7 – EU – Unemployment
- 2/7 – U.S. – Nonfarm payrolls
Thought of the week
Several states in the U.S. have reported record increases in COVID-19 infections, prompting fears of a second wave and its impact on reopening of the economy. So far, this has led several states to halt reopening plans or even impose new limits. Prior to the spike in infections, the number of deaths in the U.S. had been declining, which could have contributed to rising optimism as markets priced in the lower likelihood of another lockdown and thus, faster pace of recovery. This deceleration in deaths had been partly attributed to a larger share of younger people among the infected, and other factors such as increased testing. However, the latest pause in reopening plans has shown that state officials are willing to slow the pace of economic recovery to stem infection rates. Volatility will remain as infection numbers come through. While this may provide opportunities for longer-term investors to add some risk exposure to equities, diversification remains crucial and an allocation to core fixed income can help investors ride through the volatility.
Chart of the week
U.S. infections and deaths
Source: Johns Hopkins University, J.P. Morgan Asset Management.
Data most recently available as of 24/06/20.
All returns in local currency unless stated otherwise.
Currencies’ return are based on foreign currencies per U.S. dollar. An appreciation of the foreign currency against the U.S. dollar would be positive and a depreciation of the foreign currency against the U.S. dollar would be negative.
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