SINGAPORE (July 17): The Tantallon India Fund closed 7.73% higher in June, in another volatile month as markets oscillate between bouts of anxiety over surging Covid-19 infections potentially requiring prolonged “shutdowns” and hopes that massive liquidity infusions by global central banks would sustain asset values and anchor a look-through to “normalisation” in 2021.

Falling equity volatility, a revival of animal spirits in Chinese equities, and cautious positioning have driven a sharp rebound in global risk appetite and equity valuations for Big Tech, broadly for Chinese index heavyweights Tencent and Alibaba, and for a host of renewable energy stocks headlined by Tesla.

Juxtaposed against equity market optimism is more circumspect bond investor positioning with 10-year US Treasury yields stuck in a narrow range reflecting misgivings on the sustainability of the global recovery and employment, and the exposed fault lines on global trade and geopolitics as we head into a contentious election season in the US, exacerbated by growing concerns over Chinese territorial intent in Hong Kong, the South China Sea, and along the border with India.

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