- The vaccine rollout and vast sums of fiscal and monetary support are helping to accelerate economic growth and restore confidence.
- Global trade was disrupted when a giant container ship became lodged in the Suez Canal; Lloyd’s List estimated the loss of trade at around US$400 million per hour.
- European leaders are contending with a rise in coronavirus cases, forcing another round of temporary lockdowns to combat the spread of new variants.
- The Australian government announced that the AstraZeneca vaccine is not recommended for people under 50 following reports of ‘very rare’ blood clots.
- The RBA left the cash rate on hold at 0.1% at its April meeting and reiterated its commitment to the 3-year bond yield target.
Global Covid-19 cases continue to rise with over 130 million cases reported in early April, but the vaccine narrative is still propelling the economic recovery.
The US economy continues its upward trajectory with recent data pointing to an upswing in activity and an improvement in confidence as the vaccine rollout increases pace. More than 100 million people have received at least one coronavirus vaccine dose, and over 1 million doses were administered on a single day.
Europe’s battle against the coronavirus took a backward step as France and Italy were forced to impose nationwide lockdowns ahead of the Easter weekend following a surge in cases.
China is ramping up its vaccine diplomacy, with Chinese-made vaccines being used to inoculate millions of people in dozens of countries around the world.
Japan’s economic recovery has been stymied by a slow vaccine rollout and trepidation among consumers as daily cases continue to climb.
With no community transmitted Covid-19 cases, the Queensland government ended the snap three-day Brisbane lockdown, but maintained some mask wearing and social distancing measures.
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The information in this Market Update is current as at 12/04/2021 and is prepared by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421445 on behalf of National Australia Bank and its subsidiaries. Any advice in this Market Update has been prepared without taking account of your objectives, financial situation or needs. Before making any decisions based on the content of this document, the reader must consider whether it is personally appropriate in light of his or her financial circumstances or should seek independent financial advice on its appropriateness. Past performance is not a reliable indicator of future performance. Before acquiring a financial product, you should obtain and read the corresponding Product Disclosure Statement (PDS) and consider the contents of the PDS before making a decision about whether to acquire the product.