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Markets shrugged off the threat of coronavirus, riots and the Chinese situation, showing a clean pair of heels to the market crash. Confidence combined with, never seen before volumes of money and have resulted in a rally of epic proportions. The Nasdaq and S&P have rallied more than 40% from March lows. The surprise that triggered further rallies was the much better than expected ADP jobs report. The ADP was expected to show the loss of 8.75 million private sector jobs, but losses came in at 2.76 million, allowing a surge in market sentiment. European economic data has also stabilised with Employment numbers improving and PMI data also showing signs of improved. The growing risk appetite has seen a dramatic fall in the safe haven of the US Dollar, with the EUR rising to 1.1235, while the GBP charged up to 1.2580.

Australian GDP contracted 0.3% and is heralding the first recession in nearly 30 years! This has been a dramatic pandemic that has caused a severe economic downturn, but fiscal and monetary policy is there to support a strong economic recovery. The AUD rallied up to 0.6920, while the NZD pushed up to 0.6420, boosted by an extremely weak reserve. Markets are in full recovery mode, as economies re-open, without a second wave of the virus and despite US riots. The Chinese trade situation has the potential to threaten this recovery.

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