Global equities staged a remarkable comeback over 2020 Q2, fuelled by unprecedented levels of global policy support and relief as economies gradually reopened. Following the worst quarter for global stocks since the fourth quarter of 2008 in local currency terms, the S&P 500 went on to record its best quarter since 1998 on a total returns basis.
Commodities also had a strong quarter; Brent rose over 80%, its strongest quarter since 1990 as the Organisation for Petroleum Exporting Countries plus supply cuts and improvements in demand helped to balance oil markets. High yield bond markets also made record gains, rallying the most since 2009 as the US Federal Reserve pledged to buy corporate bond ETFs and fallen angels. Government bonds were stable despite the improvement in risk appetite as central banks reiterated their intention to keep interest rates low.