Equities rallied to new highs by early January…

As far as financial markets were concerned, FY20 was “one for the ages”. The financial year started with equities struggling to make headway from July to September in the face of US-China trade tensions and an associated manufacturing slowdown. However, late 2019 saw equities rally as central banks enacted a ‘U-turn’ on monetary policy and US-China trade tensions eased, triggering a global manufacturing recovery. The rally received further fuel in early January when the US and China negotiated a ‘Phase 1’ trade deal, seemingly reducing the risk of a trade war.