Equity market volatility have increased in 2Q19 with a rebound in June 2019 offsetting the sharp correction in May 2019. The recovery is mainly driven by easing escalation between US & China and expectation on pro-growth policies from Fed, China and ECB.

While investors welcome the resumption of trade talk, but it’s still too early to say that a deal could be achieved soon, due to few critical issues (i.e. geopolitics, technology, IP protection, etc). But, the prolonged uncertainties may (already) drag the confidence/sentiment and the economy.

Fed also turned more dovish compare to early 2019, despite recent statement tend to tone down the market expectation. Meanwhile, China and ECB are expected to announce pro-growth policies in the near term.