Articles

Although Covid case numbers continue to rise in Continental Europe as lockdowns ease and holiday travel increases, hospitalisations and mortality rates are far below the levels experienced at the peak of the outbreak.

This is a function of both the lower average age of those tested and found to be infected and the advances made in the treatment of symptoms. Both of these factors should ensure that future lockdowns are much less draconian than earlier in the year, suggesting lower risk to the economic recovery. Even so, headwinds are predicted to increase in the autumn as employment support schemes are gradually wound down and companies embark on more permanent staff reductions. Against this background, governments will be reluctant to turn off the fiscal taps completely.

In this commentary John Wyn-Evans, Investec’s Head of Investment Strategy, reflects on August’s market performance with his latest monthly observations.

Read full article here