In addition, the MSCI World Equity Index climbed a further 2.5% over the month, to be up 11% for the year. Global bond yields edged higher, while peripheral European sovereign bond spreads narrowed sharply, from their previously worrisome highs. Our own risk appetite index pushed above 75% - the highest since January 2011.
“This risk-friendly global backdrop, combined with the USD-negative policies of the Fed, paved the way for more strength in growth-sensitive currencies like the NZD/USD. In fact, the NZD was the strongest performing G10 currency over the month.” the Team adds.