Our positive outlook is driven by the ongoing recovery in the major global economies of the US, UK and Europe, which means people and businesses are getting back to work. This is good for corporate earnings, various indicators for which point to continued strong growth ahead. Tempering this positive outlook are three things: potential economic disruption created by the spread of COVID variants; the risk of inflation; and uncertainty from the heavy-handed regulatory crackdown on Chinese internet companies.

Thanks to strong vaccination programmes in some countries, sharply rising case numbers of the delta variant have been followed by a lower proportion of hospitalisations relative to earlier virus waves. This gives those governments confidence to continue easing restrictions and reopening economies.

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