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Our views 25 June 2020

COVID-19 investment update: Sustainable update

5 min read

Equity markets have remained relatively resilient in the last two weeks, perhaps something of a surprise given there is plenty of evidence that Covid-19 is not yet under control in major countries such as Brazil and India, and seeing a resurgence in the United States.

The most likely explanation for this resilience is that markets have been more focused on the shape of economic recovery as many regions come out of lockdown. The rate of economic recovery, albeit from very low levels and over a small time frame, has been better than expected.

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