Market Update - February 2021
Welcome to the January edition of the Market Update
Macroeconomic indicators remain robust, but vaccine supply delays in some regions and the emergence of new Covid-19 strains have dampened sentiment.
The US congress is negotiating President Biden’s proposed US$1.9 trillion stimulus package, which includes US$1,400 payments to low-income workers.
The EU has imposed tougher restrictions on visitors and the UK will introduce tighter border controls to prevent the spread of new Covid-19 strains.
The Biden administration will seek to repair relations with China but will face immediate challenges as China steps up military activity around Taiwan.
The RBA left the cash rate on hold at 0.1% and announced it will buy an additional $100 billion of Australian government bonds before ceasing purchases in April.