Signs are emerging that the global infection rate from COVID-19 may have peaked. While some countries are further ahead than others in the battle against the pandemic, the overall trend is looking more promising.
While we can’t rule out the chances of second or third wave surges in infections, financial markets tend to be forward looking. This means sharemarkets tend to discount the bad news experienced in the near term, while pricing in the expected recovery and rebound in economic activity at some point in the future.