US unrest threatens to derail the post-lockdown recovery and catch markets flat-footed

Even before America experienced its worst period of unrest since the civil rights era, financial markets and the global economy had seemed to be moving in parallel worlds.The dramatic rally in the benchmark S&P 500 stock index in the face of the mounting human costs of Covid-19 and the sharpest contraction in global output since the 1930s has taken the disconnect between asset prices and fundamentals to a whole new level. The index is up nearly 40 per cent since hitting a three-year low on…

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