Government relief spending from the developed economies around the world helped fuel inflation expectations
Optimism was boosted by some strong economic data in the US and Europe
More than 900,000 US jobs added in March as vaccinations spur return to normal
US$1.9 trillion relief package bill signed into law by President Biden
European equity markets post strong returns in March
Economic data emanating from Europe confirms recovery well underway
‘Third wave’ forces more lockdowns in France and Germany
Better-than-expected economic growth meant the UK looks set to avoid double dip recession
China’s equity market underperformed as new economy plays suffered amidst tightened regulatory measures
Japan’s equity market ended higher helped by improved global growth outlook
Government bond yields continued to rise during March. The main drivers were optimism over the vaccine roll-out programmes in the US and UK, as well as concerns about the inflationary impact of the economic stimulus being provided by central banks and governments
Corporate bonds held up reasonably well. The more interest rate sensitive investment grade market saw the weakest returns. However, high yield credit spreads continued to tighten
The Australian economy has performed better than expected since the onset of the pandemic and much better than some other advanced economies. In its February 2021 Statement on Monetary Policy the Reserve Bank of Australia indicated that the Australian economy had begun to recover in the second half of 2020, much earlier than expected
A ship blocking the Suez Canal since 22 February was set free on 31 March. The blocking of the Suez Canal reduced global trade by almost $9 billion a day (12% of daily global trade).