The third quarter of 2021 has now passed, with weaker economic data, persistent cost pressures and softer earnings growth combining with tapering threats to drive equity market volatility higher. The significant drawdown that we forecast back in July continues to play out, with major markets including the ASX 200 down 4-6% from their peaks.

In this detailed update, Tim Toohey, Yarra Capital Management’s Head of Macro and Strategy, provides his key takeaways and surprises (hint: Chinese policy) from the September quarter and details his outlook for remainder of 2021.