Insights

The macroeconomic outlook continued to gather momentum heading into the second quarter as the global vaccine campaign accelerated, while plans for large-scale fiscal spending in the US also emboldened calls for a rapid recovery through 2021.

The reflationary trade gathered some notable momentum in February as investors braced for massive US fiscal spending, which emboldened calls for a sharp revival in growth as global vaccinations accelerated and coronavirus infections receded.

After a solid start to the new year, sentiment deteriorated and the global equity market rally stalled-out even as the ramped-up global vaccination campaign and the prospect for increased U.S. fiscal spending emboldened calls for a rapid recovery.

A tumultuous 2020 came to a close on a positive note amid optimism that the distribution of safe and effective vaccines will revitalize the economy in 2021.

The global economy continues to heal and has stabilized at reasonably healthy levels, with the sheer abundance of monetary and fiscal stimulus acting as a critical source of support even as the coronavirus continues to circulate across the globe.