Markets remain optimistic even in the face of weak jobs data, prolonged lockdowns and delays in rolling out Covid-19 vaccines. Many of the lost jobs are in lockdown-driven sectors and are likely to return as restrictions are pared back, and the number of vaccines ready for distribution is increasing, according to Marc Franklin, head of Flexible Multi Asset.

“People are saying that in a few months’ time, a high percentage of the population will be vaccinated, and these lock-down restrictions can ultimately be lifted or pared back,” he says.

“The market is thinking more about what will happen after this pandemic,” said Ewout van Schaick, head of Multi Asset. “If you want to play the cyclical recovery, which we still expect later this year, don’t put all your eggs in one basket. Make it a diversified portfolio of bets.”