July saw a big divergence emerge between western developed markets, and Asian and emerging markets. Despite some nervousness around delta variant flare-ups, western markets advanced on the back of ongoing successful vaccine roll-outs and generally positive economic data. Japan, China and other emerging markets suffered, however, as lower total vaccination rates fuelled uncertainty in the face of renewed delta outbreaks. Regulatory crack-downs by China on US listed tech and education companies then exacerbated the emerging market falls. At the same time, global bond yields continued their march downwards, benefitting the price of longer-duration bonds and quality-growth stocks in general.

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