Market update

As central banks contemplate the future health of the World economy there is one word on investors' minds in recent weeks and that is ‘tapering’. 

As well as the usual roundup of the global investment markets, this month’s update also focuses on some key investment themes that emerged in July, some a continuation from recent months, but within certain areas, in particular China and Asia, there was a marked divergence in fortunes.

It has been a good first half of the year for investors, driven by reopening, vaccinations, and the ongoing Government use of monetary and fiscal policy to stimulate the economy. Economic growth and company earnings growth have shown supranormal recoveries from the depths of lockdown.

This month’s update takes a look at the cautious optimism that is still evident in the investment markets, as a continued increase in vaccination rates indicate that the economic recovery that we are already seeing, should continue.

The US earnings season has begun in earnest, which is when a large number of publicly traded companies release their quarterly earnings reports. The results of this will give us a good indication about whether the optimism that we are seeing in the markets is justified.