Markets were generally “risk-on” last week as the transition of power begins in the US.
Janet Yellen’s appointment to the Treasury was well received.
Souring relations with China cast a shadow over an otherwise positive week for Australian assets.
The continued rise of American virus cases and the reimposition of restrictions are holding back the global equity market.
Positive announcements on vaccines and treatments continue to arrive.
Underlying trends in global growth remain positive.
Global cyclicals and smaller companies should benefit.
Despite a rapid rise in US coronavirus infections last week, investors were focussed on news that an effective coronavirus vaccine may soon be available.
Looks like economic recovery will happen much faster in 2021
Markets were understandably “risk-on”, with substantial sector rotation also visible.