July 2021 Global Market Commentary
In July, we saw continued recovery, particularly in the U.S., and Europe, as developed-market equities posted solid gains for the month, despite concerns around the more contagious COVID-19 Delta variant.
Despite the spike in cases globally and reinstatement of mask measures in major cities, the market continued its ascent to new highs, placing its faith in existing vaccines’ protection against serious illness and mortality from the new COVID-19 variants.
In the UK, most COVID-19 related restrictions were lifted in July and local equity markets rallied 2.9% in the month. Similar to the rest of the world, supply chain related issues are causing increased business costs in the UK, namely shortages of raw materials and difficulty filling some job vacancies.
Weakness in the Chinese equity markets, with increased scrutiny around the technology sector caused broader emerging markets to underperform in the month. Emerging markets are barely up +1% year to date, compared to U.S. and other developed markets, which are up +15-17% in the same period.