Each month we publish Market Wrap, a summary of the previous month’s economic highlights.
Earlier optimism on the virus front started to fade, as a gradual easing of restrictions saw a spike in the number of new cases. This saw new constraints imposed in some areas and prompted the World Health Organisation to suggest the worst of the pandemic may be ahead.
Locally, further outbreaks of the virus prompted the implementation of new four-week lockdowns in parts of Melbourne. Meanwhile in the US, soaring numbers of new cases saw reopenings scaled back in large States including Florida, Texas, California and Arizona.
Whilst concerning, markets appears to shrug off these developments. With implicit support from major central banks – which continue to flood markets with liquidity – risk assets remained well supported globally. Australian shares made further progress following solid gains in April and May and credit spreads narrowed further.