Financial Market Review: Third quarter 2020

A quarterly review of results in the global equity, fixed income, currency, and commodity markets.

The views expressed are those of the authors at the time of writing. Individual teams may hold different views. The value of your investment may become worth more or less than at the time of original investment. For professional or institutional investors only.

Global equities (+7.1%) rose for the second straight quarter, ending with a year-to-date gain of 1.6%. Markets were bolstered by the impact of the massive fiscal and monetary stimulus from governments and central banks, further signs of a recovery in global economic growth, and the potential for COVID-19 vaccines in the near future. However, the recovery was threatened by the pandemic. The worldwide death toll eclipsed one million, with infections escalating in Europe, the US, India, and Latin America. Europe faced an alarming rise in cases, as the number of new infections reached record highs in some countries. Global economic indicators showed that the global economic recovery strengthened, if at a more moderate pace. The European Union (EU) reached an agreement on a €750 billion recovery fund to aid countries in the region that have been most severely impacted by the pandemic. The US grappled with political uncertainty ahead of the upcoming presidential election and the lack of additional fiscal stimulus. Brexit negotiations deteriorated after a controversial bill that could override elements of the Brexit Withdrawal Agreement passed its first parliamentary hurdle in the UK’s House of Commons.

Global fixed income sectors generated positive returns over the third quarter. Global COVID-19 cases swelled amid encouraging developments in vaccine trials, and economic data continued to rebound as restrictions eased in most countries. Sovereign yield curves generally steepened, as accommodative central bank policies anchored front-end yields and lifted inflation expectations. Fixed income credit spreads tightened, supported by expansionary fiscal policies, including an agreement on…

To read more, please click the download button below.

RECOMMENDED FOR YOU

EMs: With great challenges come great opportunities
From health and wellness to climate change and more, the COVID-19 crisis has spawned or accelerated compelling investable themes across a range of EM countries. Against that backdrop, four of Wellington’s EM equity portfolio managers share their latest insights.
October 2020
EMs: With great challenges come great opportunities
,
Tracking the green transition in emerging markets
COVID-19 has ratcheted up environmental debates across emerging markets and highlighted the intersection of those concerns with local supply chains and infrastructure gaps. Equity Portfolio Manager Liliana Castillo Dearth looks at China as a case study.
October 2020
Tracking the green transition in emerging markets
,
The dawn of divergence and the art of subtlety
Multi-Asset Strategist Nick Samouilhan highlights the key divergences we should start to see as fundamental differences between companies, sectors, and countries begin to matter more.
October 2020
The dawn of divergence and the art of subtlety
,
Global ESG Research Update — Looking inward on our diversity practices
Our team describes insights gained during a firmwide panel discussion with D&I officers from leading global consumer companies. We also provide an update on our ESG engagement and proxy voting activity in the quarter.
October 2020
Global ESG Research Update — Looking inward on our diversity practices
,
Endowments, foundations, and nonprofits: Research and investment ideas
Explore this curated collection of insights designed to help nonprofits navigate market dislocations and opportunities.
October 2020
Endowments, foundations, and nonprofits: Research and investment ideas
,
Financial Market Review: Third quarter 2020
A quarterly review of results in the global equity, fixed income, currency, and commodity markets.
October 2020
Financial Market Review: Third quarter 2020
,
Monthly Market Snapshot: September 2020
A monthly update on equity, fixed income, currency, and commodity markets.
October 2020
Monthly Market Snapshot: September 2020
,
The US-China split: A tectonic shift in geopolitics
US-China tensions are here to stay, argue Geopolitical Strategist Thomas Mucha and Macro Strategist Santiago Millán. They look at the causes, potential outcomes, and investment implications of the rift.
October 2020
The US-China split: A tectonic shift in geopolitics
,

We use cookies to improve your experience on our website. To accept cookies click Accept & Close, or continue browsing as normal. For more information, visit Cookies & Tracking NoticE.