Global Matters Weekly – 19 October 2020

Relationship Problems
by Robert White, CFA

With the US election now just two weeks away, investors are busy forming expectations on the result and looking at the potential policy implications of either a Biden or Trump victory. While there is plenty of short term focus on the eventual shape of any additional stimulus package to emerge from Congress, perhaps the most important issue for long term investors will be how US-China relations develop from here. For those wanting a detailed outline of our thinking on this issue, we have recently published a thought piece in addition to this week’s blog which is available here.

Market Snapshot

  • A relatively flat week for global equities which returned -0.3%
  • The IMF upgraded their global growth projection to a -4.4% contraction this year, from a -4.9% contraction forecasted in June
  • Brent crude rose +0.2% ending the week at $42.9 a barrel
  • Gold fell -1.6% to end the week at $1899.3 an ounce