Coronavirus recovery: hedging and market volatility show flaws in bullish narrative

The rally in global stock markets, which rebounded spectacularly following the dramatic pandemic-induced sell-off in March, is flagging. The MSCI All-Country World Index, a gauge of global equities, is up just 1 per cent since June 8. Even the CSI 300, which last week enjoyed its best run in five years, is losing momentum as foreign investors dump Chinese shares at a record pace, according to the Financial Times.However, sentiment in equity markets remains upbeat. This is partly because of the…

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