Global tug of war: Developed markets lead the charge while EMs lag slightly behind

What are the implications for investors?

Global equities continued their move up, closing March positive at 2.7% (MSCI ACWI in USD terms), with the Euro Stoxx 50 closing up a healthy 7.9% (EUR) and the S&P 500 up 4.4% (USD). The Russell 2000 started to lag ending the month at 1.0% (USD).

The US's relatively fast vaccine roll-out sets it on course to lead reopening and growth again. It has not experienced some of the bumps that continental Europe has, with supply issues and then a temporary suspension of one of the vaccines. Excluding China, many emerging markets will have to wait longer for the vaccine and for their economies to fully reopen and normalise. Further good news for the US came in the form of additional stimulus, as the $1.9trn American Rescue Plan Act passed. In addition, President Joe Biden will reveal the $2trn US infrastructure plan, anticipated to be ...