In modern history the global economy has never shut down in the way it did in 2020. Re-starting it has not been easy. The pandemic has not gone away and there are all kinds of supply disruptions.
The recovery in domestic demand is extending to the Euro area, but with this comes with more signs of supply-side constraints. China can fill the gap, with some thorny consequences for international relations.
Axel Botte, strategist at Ostrum AM (Natixis IM), points out that the markets are entering the second quarter with a bang and that the new encouraging economic indicators have driven the recovery of risk. However, he warns about the lack of fiscal action that prevails in Europe.