Despite numerous headwinds, global equity markets are proving very resilient overall. Whilst there are growing doubts about the strong performance since the start of the year, there is certainly no sign of widespread risk aversion. Instead, rotations between sectors and regions are dominating – against the backdrop of an increasingly complex mix of geopolitics, interest rates and structural future trends.

The ongoing conflict in Iran remains a key source of uncertainty. Recurring fears of escalation are leading to higher volatility at times, as market participants fear both disruptions to energy and commodity supplies and broader geopolitical contagion. Consequently, oil prices and energy-intensive sectors in particular are reacting…