The global economy is on track for a year of above-trend growth in 2021, despite signs of moderating global growth momentum. Downside risks posed by lingering COVID-19 and inflation concerns, as well as regulatory and geopolitical uncertainty will continue to weigh on market sentiment.

Hence, we stay neutral on equities and believe a selective approach continues to be warranted given the choppy market action witnessed over the past month. Meanwhile, we continue to favour credits over sovereign bonds given the former’s more attractive carry and as a hedge against the latter’s duration risk.

View the full October2021 Research Report, please click here.

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