In July we were faced with uncertainty about the economic climate—high dividend stocks were the main detractors; small-caps saw a strong rally; bank sector out-performing. The overall alpha increased in comparison to June, without macro-policy intervention. However, market remains on a risk-off tone, with few hot topics still circulating and low trading volumes. Market Neutral strategies posted negative return affected by the general market performance and basis movement. 

Following the CPB meeting, the market saw an increase in volume and volatility increase, a positive outlook and a strong currency rebound. A notable surge in short-term market activity has contributed to an environment conducive to alpha, which is likely to experience a long-term upswing should the favourable atmosphere continue.