BIS says fundamentals lagging behind market sentiment

The Bank for International Settlements (BIS), in its latest quarterly bulletin released today, says the global macroeconomic performance is "yet to catch up" with the "renewed sense of optimism" in financial markets.

Nonetheless, the expansionary policies maintained by central banks across the five major reserve currencies, combined with a slowdown in the pace of short-term fiscal consolidation, have boosted markets, the review said.

"As tail risks receded, market participants became more