Beyond the obvious slowdown in the global economy in recent months as a result of the Covid-19 flare-ups, we believe this should be adequately offset by greater policy support, especially in China, which would move from financial repression to something more friendly, either by easing monetary policy or some more targeted fiscal stimulus, while the Fed is likely to have to delay any announcement of tapering asset purchases to December which remains our baseline scenario.

Recent debate has focused on potential policy adjustments by the major central banks and in particular the Fed. In this regard, we believe that the pace of policy changes will be gradual enough not to derail the economic recovery or market rally, while the differences between more hawkish and more dovish central banks will create opportunities.

We expect major central banks to continue to support growth and keep rates low for longer. This is positive for equity markets, particularly for the cyclical and value areas of the market.

For further information, please refer to the attached report Market Vision September 2021.