June 2020

• Global markets continued advancing in June as economic reopening efforts and unprecedented policy support sustained investor optimism despite rising coronavirus cases in several regions.
• Equity markets recovered further, with technology and growth sectors continuing to lead gains globally.
• Central banks maintained aggressive monetary stimulus measures and signalled long-term support for financial markets.
• Economic data showed early signs of recovery from the severe contractions experienced earlier in the year.
• Emerging markets benefited from improving liquidity conditions and recovering global trade expectations.
• Commodity prices strengthened further as demand conditions gradually improved.

Asia (ex. Japan)

Asian markets outside Japan advanced during June as economic activity continued recovering following earlier lockdown measures. Chinese industrial production, retail sales and manufacturing indicators improved steadily, helping support broader regional sentiment.

Technology-heavy economies such as Taiwan and South Korea remained among the strongest performers globally due to continued demand for semiconductors, digital infrastructure and remote working technologies. Investors also responded positively to improving export conditions across the region.

Europe

European equities continued recovering during June as governments accelerated reopening efforts and investors anticipated significant fiscal stimulus from the European Union. The European Central Bank maintained extensive asset purchase programmes to support liquidity and credit markets.

Although economic activity remained below pre-pandemic levels, manufacturing and business confidence indicators improved notably from April lows. However, renewed virus outbreaks in some regions created periodic volatility and uncertainty.

United States

U.S. equities advanced further during June as technology and healthcare sectors continued driving market performance. Investors remained optimistic that unprecedented Federal Reserve support and fiscal stimulus would sustain recovery momentum.

Economic indicators improved meaningfully from earlier lows, with stronger retail sales and employment data supporting confidence. However, rising coronavirus infections in several states increased concerns regarding the sustainability of reopening efforts.

United Kingdom

UK equities delivered positive performance during June as economic reopening measures progressed gradually and fiscal support programmes remained extensive. The Bank of England expanded asset purchases further to support financial conditions.

Economic activity improved from severe April lows, though sectors such as aviation, hospitality and retail continued facing substantial challenges due to social distancing restrictions.

Japan

Japanese equities advanced during June as improving global trade conditions and supportive monetary policy boosted investor confidence. Exporters benefited from recovering demand in China and stabilising supply chains.

The Bank of Japan maintained aggressive monetary support measures, while government stimulus programmes aimed to support domestic consumption and business activity.

Emerging Markets

Emerging markets performed strongly during June as abundant global liquidity, improving trade conditions and recovering commodity prices encouraged investor inflows.

Asian economies continued outperforming due to stronger virus containment measures and robust technology demand, while Latin American and commodity-exporting economies recovered more gradually due to ongoing healthcare challenges.

Commodities

Commodity prices strengthened further during June as global economic activity improved gradually and investor confidence continued recovering. Oil prices advanced steadily due to production cuts and improving demand expectations.

Industrial metals benefited from stronger Chinese infrastructure spending and recovering manufacturing activity, while gold prices remained elevated amid extremely low interest rates and continued economic uncertainty.