Most global share markets rose over the September quarter, and bond yields inched higher. Growth in advanced economies remains robust despite the pandemic which continues to challenge policy makers.

As vaccination rates rise and economies around the world re-open, there are signs that inflation will begin to return, and the expectation that interest rates will begin to rise helped push bond yields higher. Stronger global wages and falling unemployment rates remain supported by substantial fiscal and monetary stimulus. Indications are for a bounce-back in activity as vaccination efforts accelerate.

Energy prices rose due to shortages of natural gas, coal and electricity in Europe, China and the UK in the lead up to winter and the ongoing shift to cleaner power. What remains to be seen is how central banks around the world react to the possibility of rising inflation.