The June 2026 quarter was characterised by a gradual recovery in investor sentiment following the sharp stagflation scare that dominated markets during the March quarter. While geopolitical tensions in the Middle East remained elevated, concerns around a prolonged disruption to global energy supplies eased as alternative shipping routes were established and production from non-OPEC producers increased. As a result, oil prices retraced a portion of their earlier gains, helping to stabilise inflation expectations and reduce fears of a sustained global growth shock.
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