Vanguard economic and market update
24 September 2020 | Markets and Economy
Vanguard's key points:
- The pace of economic recovery from the Covid-19 pandemic appears uneven, with US data at the optimistic end of expectations but activity in the UK lagging behind what we expected at the end of June.
- The risks of a second Covid wave (and, potentially, more severe lockdowns) appear elevated. But better-than-expected activity data, plus vaccine hopes, also increase the probability of upside scenarios materialising.
- Vanguard continues to expect monetary policy to remain loose into 2021, with risks skewed toward further easing and inflation contained.
- Amid signs of a global trade pickup, China appears to be the main winner, buoyed by products in demand during Covid lockdowns.
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© 2020 Vanguard Investments Switzerland GmbH. All rights reserved.