Global | 2021 - a disappointing end after a promising start

The markets have performed well in 2021, even taking into account the recent corrections. A successful vaccination rollout supported the reopening of the economy which, along with the various fiscal stimulus packages, helped drive the recovery in domestic demand and increased investor appetite.

Key points

• Key points:
• The major central banks maintained their loose monetary policy in the first half of the year - avoiding a hasty reaction to growing inflationary tensions.
• In 1H21, short-term debt yields remained anchored around zero, in line with monetary policy objectives, with a simultaneous spike in long-term yields.
• Corporate earnings reflected the increase in economic growth and this, together with the market's ample liquidity, helped the main stock markets reach record highs.
• However, this positive dynamic began to slow down towards the end of the year, when the risk that the transitory factors keeping inflation high would last longer than expected, led central banks to begin rowing back on stimulus measures.

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