International

• Investment growth in world markets has been driven by markets expecting global recovery, led by massive vaccine rollouts. The UK and US have led the number of vaccinations administered in developed economies with more than half of their populations having received at least one vaccine injection by the end of the first quarter. Emerging market economies have struggled to guarantee supplies of vaccines.
• The US Congress passed a $1.9 trillion stimulus package in March, resulting in the total Covid-19 stimulus of 26.5% of GDP. President Biden unveiled a $2.3 trillion American Jobs Plan at the end of March that is focused on infrastructure investment.
• The markets are concerned about inflation. This resulted in a selloff of US bonds, which returned -3.1% for the quarter. Major US stock markets earned positive returns for the quarter.
• Chinese stock markets came under pressure as the Chinese government increases its regulation of tech companies like Alibaba and Tencent.
• European markets had a strong start to the year with the German Dax returning +9.4%, France’s CAC up +9.3% and UK market rising 3.9% over the first three months of the year.

Although world leaders and policy makers aim to maintain the momentum gained over the past number of months, there is risk when fiscal debt and inflation increases.

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