The market continues to hold up surprisingly well, despite the fundamental challenges exposed by the coronavirus pandemic. The U.S. in particular is a lesson in contrasts. Though tech stocks are keeping the Nasdaq and other indices in the green as 2Q earning season begins, the spikes in cases across several states show that America is far behind Europe and China in containing the virus, which also explains in part the euro’s current 1.14 valuation against the dollar. 

One reason for this optimism is the reports of progress toward a COVID-19 vaccine. There are currently 23 vaccines in human clinical trials; the positive early results released over the last two weeks by Moderna and Pfizer-BioNTech are overriding ongoing concerns about the lack of leadership in the U.S. and the gradual reopening of other economies. A vaccine is still months away from mass production, making it likely that the market will take more twists and turns before closing this chapter of the crisis.

Private equity markets, meanwhile, have their eye on the Middle East and North Africa, particularly the UAE; investments in startups based in the region have increased by 35% in the first half of 2020. The European private equity market declined in the same period as investors focused on portfolio triage during the pandemic’s nadir.