Global equities recorded their strongest August returns since 1986, with the FTSE All World Index surpassing its previous peak in February, propelled by a weaker US dollar and hopes of further fiscal and monetary stimulus. However, the start to September was weaker, with tech stocks suffering a notable reversal.

Investors started to shift from safe haven assets, such as sovereign debt and gold, into equities. Gold suffered its largest one-day sell-off for seven years while yields on government bonds rose: the 10-year Treasury yield has risen 15bps since the end of July while the German Bund yield touched its highest level since early June. Goldman Sachs forecast that the FDA would approve a Covid-19 vaccine before the end of 2020. Russia said it had approved its vaccine for use beyond clinical trials. The country will start vaccinating its citizens in the autumn, making it the first country to do so – although the vaccine has only undergone limited stage 1 trials. China has also started to vaccinate its military, using a vaccine provided by CanSino Biologics.

Tensions between the US and China rose again after President Trump unveiled executive orders targeting popular social media apps TikTok and WeChat. The US administration also re-imposed a 10% tariff on imports of some Canadian aluminium, which responded with tit-for-tat measures of its own.

Stockmarkets weakened as dismal second-quarter GDP data in the US and eurozone underlined the extent of the COVID-19 related recession

Global equities lost ground amid rising diplomatic tensions between America and China.

Global equities rallied, supported by expectations of further stimulus in the US and Europe.

Investors shifted into haven assets as global COVID-19 cases continued to rise sharply in southern and western US states, as well as Latin America. Tokyo also saw a surge in new infections, whilst Hong Kong shut schools to control a fresh outbreak.

After record second-quarter returns, global stocks started July on a strong footing as better-than-expected US jobs data helped investors look beyond a sharp rise in new COVID-19 infections in the US and Latin America.

Global stocks slid on news of a sudden spike in COVID-19 cases in southern and western US states. Renewed trade friction between the US and Europe also knocked investor sentiment.

Global stock markets rebounded over the week, putting them on course for the best quarterly returns in a decade. This comes despite news of Germany and China suffering new COVID-19 outbreaks and a rise in US daily infections. Brazil and India also continued to see sharply rising COVID-19 infections. A cheap steroid, dexamethasone, was found to cut the death rate of the most seriously ill COVID-19 patients on ventilators by one-third, and by one-fifth in patients receiving oxygen. This is the first proven treatment for severe COVID-19 cases.