Global Market Themes: US bond yields spike amidst inflationary fears Rotation from tech stocks sends NASDAQ plummeting US Fed keeps dovish stance, Congress votes on stimulus bill Energy stocks post substantial gains SA Market Themes: South African unemployment at record highs Budget 2021 – few surprises, concern about further SOEs bailouts Limited progress in vaccine rollout sparks disillusionment South Africa returns to lockdown level 1, effective 1 March 2021

Here are this month’s highlights: Chinese equities had a strong month again, with the MSCI China and MSCI China A Onshore rising by 7.4% and 3.7%, respectively. On the macro front, Chinese economic data such as PMI, retail sales and exports remained strong as the economy continued to recover. Institutional investors’ attention to the rapid growth of Asian stock markets was matched by rising concerns regarding ESG in the region, and especially in China.

Global Market Themes: Developed markets give up initial gains, emerging markets outperform as reflation trade buoys risk assets European lockdowns extended and markets unsettled as concerns surface about vaccine roll-out US announces further $1.9 trillion stimulus package A tumultuous week in US politics with the storming of Capitol Hill ahead of Biden inauguration Commodities boosted by reflation trade SA Market Themes: December economic data comes in better than expected SARB leaves rates unchanged, citing upside risk to inflation due to higher fuel costs, administered prices and rand weakness Eskom tariff increase on the cards, as power utility battles ongoing breakdowns Vaccine news fuels hope and COVID-19 infection rates tick steadily downward

Global Market Themes: Global equities continue risk-on rally, despite resurgent COVID-19 Emerging Markets climb as commodities shine, Chinese GDP growth accelerates US markets shrug off election fall-out Extension of CARES Act benefits COVID-19 vaccine roll-out as Europe battles second wave Brexit concludes with a fizzle SA Market Themes: Mutation in COVID-19 fuels contagion and higher death tolls President Cyril Ramaphosa places South Africa on Adjusted Alert Level 3 Lockdown Alcohol companies take on renewed ban on liquor sales Additional restrictions weigh on consumer-, domestic- and travel-and-tourism sectors SA stocks benefit from global risk-on sentiment, despite challenging domestic fundamentals

Global Market Themes: Vaccine hopes and a Biden presidential victory spur global markets higher Dollar weakness, accommodative Federal Reserve Bank policy further boost Emerging Markets France goes ahead with digital taxation of US tech giants Oil and industrial metal prices surge on hopes of economic recovery SA Market Themes: South African markets rally in line with global risk-on sentiment Monetary Policy Committee leaves rates unchanged, inflation outlook stable South Africa suffers further downgrades from major ratings agencies South Africa in the grip of a second wave of COVID-19 infections, tighter regulations loom

In October, China’s economic recovery continued. During the National Day holiday – a popular travel time – the total number of domestic tourists reached 618 million, better than the 550…

China Market Themes: Chinese markets fell by 15% from their January peaks. The unique Chinese system helped to manage the virus outbreak. Surprisingly many equity indices ended the year at higher levels than the start of the year. New antitrust rules were brought in to curb anti-competitive behaviour.

Global Market Themes: Developed market equities underperform Emerging Market (EM) Chinese equities lead EM higher as China set to record positive economic growth in 2020 US GDP growth recovery threatened by a lack of agreement on renewed fiscal stimulus Tech earnings slump as executives are grilled by US Commerce Committee Lockdown 2.0 threatens Europe’s nascent economic recovery Oil prices slump on COVID-19 demand and election speculation SA Market Themes: Local equity markets struggle, led lower by diversified miners MTBPS signals political commitment to structural reform despite concerns around SAA bail-out Expropriation Bill signals certainty around Expropriation without Compensation Post-COVID-19 Recovery Plan outlines five pillars to boost GDP growth