Market Update - June 2020

FROM THE GLOBAL CIO OFFICE - By Candice Bangsund, Vice President and Portfolio Manager, Global Asset Allocation

Investor optimism flourished for a second straight month in May and risky assets maintained their resilience on speculation that global growth will recover rapidly as lockdowns are eased and economies progressively reopen, while the wave of monetary and fiscal stimulus measures and hopes for a COVID vaccine also emboldened the risk-on trade. At the same time, investors have largely turned a blind eye to renewed frictions between the US and China that have been exacerbated by the latest developments in Hong Kong – which are almost certain to test already-fragile relations between the world’s two largest economies.