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Positive COVID-19 vaccine developments give us greater confidence in the activity restart, and may make it easier for policy support to bridge the income gap.
The vaccine news sparked a sharp rotation into value and small-cap stocks that fizzled later in the week when near-term virus concerns returned to the fore.
China’s industrial output data this week will likely confirm the ongoing recovery, while U.S. data may not yet reflect the recent worsening in virus dynamics.