Markets appear to be recovering from their initial anxiety, which had sent equities lower and had triggered buying of safe haven bonds.

The latest forecasts suggest that the upswing will continue through the rest of this year and into 2022

Although some countries, especially among the emerging markets, are still experiencing surges of new coronavirus cases, the global economy has been overall recovering strongly from the pandemic.

Present indications suggest that a moderate rather than strong recovery looks the most likely scenario.

The outlook will be shaped by two key factors. On the plus side, risk assets have done well as more evidence has appeared showing that the world economy is recovering from the 2020 coronavirus hit, and the economic backdrop is likely to remain supportive as more countries make greater progress with vaccination and gradual lifting of restrictions.