The US election had earlier dominated attention. Donald Trump’s reluctance to
concede diverted attention from possible policy changes under the new Biden administration, but this will likely become an increasing focus for investors in the months ahead.
Credit spreads narrowed sharply, both in Australia and overseas. This reflected optimism around the vaccines and a potential return to
‘normality’ in 2020, and supported returns from corporate bonds domestically and internationally.
Overall news flow remained supportive of risk assets including equities and credit and enabled most major share markets to make positive progress.
The rollout of Covid vaccines remained the key focus worldwide. More than 30% of adults in the US have now received at least one jab, for example, and new infections are down by around 80% since the peak in January.