InvestNow News – 24th July – Market Overview – Russell Investments – June 2020
Article written by Russell Investments – June 2020
Global shares
Global share markets made strong gains in the June quarter, with the MSCI ACWI Index – Net returning 9.8% in unhedged New Zealand dollar (NZD) terms. In hedged NZD terms, the Index returned 17.9%. Much of the gains were driven by expectations economic activity would pick up amid a further loosening of coronavirus containment measures and ongoing fiscal and monetary policy support globally. With more and more countries emerging from their virus-induced lockdowns, investors bet that the worst of the pandemic had passed and that growth would likely begin to accelerate through the second half of the year. At the same time, governments and central banks worldwide continued to build on the unprecedented levels of financial aid they deployed at the height of the pandemic, with fresh stimulus seen in the US, Europe and China. Stocks also benefited from intermittent reports that a vaccine may be close (though an effective vaccine ultimately failed to materialise) as well as a strong rebound in oil prices. Limiting the advance was news the US economy shrank 4.8% in the year to 31 March and a spike in US unemployment to levels not seen since the Great Depression. Stocks were also impacted by news Japan and Germany entered technical recessions in the first quarter and heightened Sino-US tensions. Sentiment was further impacted by growing concerns a potential second wave of coronavirus infections could derail the global recovery. Countries such as China, Japan and Germany all reported an increase in new cases during the period, while the virus death toll in the US surpassed 122,000 even as many states were easing restrictions.
IMPORTANT INFORMATION
The information contained in this publication was prepared by Russell Investment Group Limited on the basis of information available at the time of preparation. This publication provides general information only and should not be relied upon in making an investment decision. Before acting on any information, you should consider the appropriateness of the information provided and the nature of the relevant Russell Investments’ fund having regard to your objectives, financial situation and needs. In particular, you should seek independent financial advice and read the relevant Product Disclosure Statement or Information Memorandum prior to making an investment decision about a Russell Investments’ fund. Accordingly, Russell Investment Group Limited and their directors will not be liable (to the maximum extent permitted by law) for any loss or damage arising as a result of reliance being placed on any of the information contained in this publication. None of Russell Investment Group Limited, any member of the Russell Investments group of companies, their directors or any other person guarantees the repayment of your capital or the return of income. All investments are subject to risks. Significant risks are outlined in the Product Disclosure Statements or the Information Memorandum for the applicable Russell Investments’ fund. Past performance is not a reliable indicator of future performance. The Product Disclosure Statements or the Information Memorandum for the Russell Investments’ funds (as applicable) are available by contacting Russell Investment Group Limited on 09 357 6633 or 0800 357 6633.
The Russell Indexes mentioned in this document are trademarks of Frank Russell Company (Russell). Russell is the owner of the Russell trademarks and all trademark rights related to the Russell trademarks, which the members of the Russell Investments group of companies are permitted to use under license from Russell. The members of the Russell Investments group of companies are not affiliated in any manner with Russell or any entity operating under the ‘FTSE Russell’ brand.
Copyright © 2020 Russell Investments. All rights reserved. This information contained in this documents is proprietary and may not be reproduced, transferred, or distributed in any form without prior written permission from Russell Investments.
NZ1-00161 AP0049 – Q2 NZ Market Overview_V1F_2007
InvestNow News – 24th July – Market Overview – Russell Investments – June 2020
Article written by Russell Investments – June 2020
Global shares
Global share markets made strong gains in the June quarter, with the MSCI ACWI Index – Net returning 9.8% in unhedged New Zealand dollar (NZD) terms. In hedged NZD terms, the Index returned 17.9%. Much of the gains were driven by expectations economic activity would pick up amid a further loosening of coronavirus containment measures and ongoing fiscal and monetary policy support globally. With more and more countries emerging from their virus-induced lockdowns, investors bet that the worst of the pandemic had passed and that growth would likely begin to accelerate through the second half of the year. At the same time, governments and central banks worldwide continued to build on the unprecedented levels of financial aid they deployed at the height of the pandemic, with fresh stimulus seen in the US, Europe and China. Stocks also benefited from intermittent reports that a vaccine may be close (though an effective vaccine ultimately failed to materialise) as well as a strong rebound in oil prices. Limiting the advance was news the US economy shrank 4.8% in the year to 31 March and a spike in US unemployment to levels not seen since the Great Depression. Stocks were also impacted by news Japan and Germany entered technical recessions in the first quarter and heightened Sino-US tensions. Sentiment was further impacted by growing concerns a potential second wave of coronavirus infections could derail the global recovery. Countries such as China, Japan and Germany all reported an increase in new cases during the period, while the virus death toll in the US surpassed 122,000 even as many states were easing restrictions.
IMPORTANT INFORMATION
The information contained in this publication was prepared by Russell Investment Group Limited on the basis of information available at the time of preparation. This publication provides general information only and should not be relied upon in making an investment decision. Before acting on any information, you should consider the appropriateness of the information provided and the nature of the relevant Russell Investments’ fund having regard to your objectives, financial situation and needs. In particular, you should seek independent financial advice and read the relevant Product Disclosure Statement or Information Memorandum prior to making an investment decision about a Russell Investments’ fund. Accordingly, Russell Investment Group Limited and their directors will not be liable (to the maximum extent permitted by law) for any loss or damage arising as a result of reliance being placed on any of the information contained in this publication. None of Russell Investment Group Limited, any member of the Russell Investments group of companies, their directors or any other person guarantees the repayment of your capital or the return of income. All investments are subject to risks. Significant risks are outlined in the Product Disclosure Statements or the Information Memorandum for the applicable Russell Investments’ fund. Past performance is not a reliable indicator of future performance. The Product Disclosure Statements or the Information Memorandum for the Russell Investments’ funds (as applicable) are available by contacting Russell Investment Group Limited on 09 357 6633 or 0800 357 6633.
The Russell Indexes mentioned in this document are trademarks of Frank Russell Company (Russell). Russell is the owner of the Russell trademarks and all trademark rights related to the Russell trademarks, which the members of the Russell Investments group of companies are permitted to use under license from Russell. The members of the Russell Investments group of companies are not affiliated in any manner with Russell or any entity operating under the ‘FTSE Russell’ brand.
Copyright © 2020 Russell Investments. All rights reserved. This information contained in this documents is proprietary and may not be reproduced, transferred, or distributed in any form without prior written permission from Russell Investments.
NZ1-00161 AP0049 – Q2 NZ Market Overview_V1F_2007
