Around the world in 80 seconds

Karim Chedid
Karim Chedid, CAIA
EMEA ETF Investment & Product Strategy

Unless otherwise stated all data is sourced from BlackRock as at 01 December 2020. All amounts given in USD.

Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the amount originally invested.

  • Hi, welcome to Around the World in 80 Seconds, and happy December!

    November has closed as a very positive month for sentiment across equities and this time, strongest in a very long time, EM (Emerging Markets) is part of it, unlike earlier in the year.

    We’re seeing EM in focus across EM debt and EM equities with flows starting to come back. In EM debt, the key driver being the search for income, as highlighted by the BlackRock Investment Institute in the recent upgrade to the view there to neutral.

    This week, a flurry of data are remaining in focus - we have a round of PMIs (Purchasing Managers’ Index) globally. In China, China is continuing to shine, with resilience shown across manufacturing and services - the recovery continues, and China is the only major economy set to finish 2020 in the green, proving a V-shaped recovery following the Covid shock. China is a theme across asset classes that we see continuing to be in focus into Q1.

    Other data points are likely in Europe and the US to be more of a moot point because the focus there has shifted towards the pricing in of a double dip given the widespread lockdowns in Europe and soon following in the US, but also given the focus on vaccine which has become more interesting for market sentiment after the recent news flow and positive mood music.

    Now the focus on the vaccine front is shifting from the initial three major announcements of effective vaccines to regulatory approvals. The first coming from the UK, and then soon to follow the US, with roll outs expected as early as next week and mid-December. Again, a key theme into 2021 will be vaccine logistics and roll out.

    For markets, with an end in sight for the pandemic, this is going to be key for sentiment, but there will be more bumps on the road.

    Thank you for joining us.

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