Insights

In June, the unrelenting appetite for risk prevailed and global stock markets continued to grind higher amid optimism for a successful reopening of major economies that are awash with central bank and government support.

The reflationary trade gathered some notable momentum in February as investors braced for massive US fiscal spending, which emboldened calls for a sharp revival in growth as global vaccinations accelerated and coronavirus infections receded.

The end of the summer brought with it a shift in sentiment.

Investor anxiety morphed into panic in February. Financial markets were rattled by the latest headlines around the novel coronavirus, with investors attempting to gauge the severity of the widening epidemic and the implications for global growth.

Optimism flourished in November and global equity markets soared to new highs after some encouraging reports of progress on the vaccine-front, which raised the prospect for an end to the pandemic and emboldened expectations for a rapid recovery in growth.