August 31, 2020

COVID PARALYSIS RECEDES AS POLITICAL RISK RISES

Share on facebook
Share on twitter
Share on linkedin
Share on email

In Short

After a buoyant August for risk assets, the rally is likely to flatten out. Rising new infections into the autumn, a leveling recovery pace and diverse political risks (US politics, Brexit, geopolitics) will keep a lid on risk sentiment.
COVID PARALYSIS RECEDES AS POLITICAL RISK RISES
Share on facebook
Share on twitter
Share on linkedin
Share on email

Highlights:

  • After a buoyant August for risk assets, the rally is likely to flatten out. Rising new infections into the autumn, a levelling recovery pace and diverse political risks (US politics, Brexit, geopolitics) will keep a lid on risk sentiment.
  • Yet recovering data, committed central banks, falling Covid-19 lethality and optimism about vaccines still support a slight pro-risk bias.
  • We keep a prudent overexposure to risky assets, centred in high-quality buckets of Credit. Look to increase the pro-cyclical bias in portfolios as the Covid paralysis fades out

Download the full publication below

COVID PARALYSIS RECEDES AS POLITICAL RISK RISES

Also interesting

size 3
June 17, 2021
Market Commentary

COVID-19 UPDATE Facts & Figures

Federal-Reserve-building-FED-Washington-USA
June 16, 2021
Market Commentary

The Fed is more confident on the recovery and brings forward to 2023 the first hike

European-Central-Bank-in-Frankfurt_web
June 10, 2021
Market Commentary

ECB holds a steady hand, no tapering yet