The break-out in risk assets would suggest a combination of hope in an improving macro environment, unprecedented monetary easing by the US Federal Reserve since the end of February, and asset valuations that are supported by extremely low interest rates.
SINGAPORE (June 12): The Tantallon India Fund closed down 3.13% in May, another volatile month as the markets weighed a “look through to a new normal” underpinned by “at all costs” fiscal, monetary, and policy support, against the stark economic reality of extended global lockdowns and job losses.
The trade-weighted dollar was the worst-performing major asset, while distressed growth proxies — including US$-denominated emerging-market sovereign bonds, developing-market and European equities and credit, commodity currencies, and small cap stocks — rebounded sharply on the belief that reopening the economy in multiple virus-hit geographies would herald a recovery in global risk appetite.
