Weekly commentary: Corporate earnings beyond the restart

We see above-trend corporate earnings growth moderating as we move beyond the economic restart. We remain overweight Europe and neutral U.S. equities. U.S. stocks rallied to all-time highs on better-than-expected corporate earnings. Euro area economic activity is now close to its pre-Covid level. The Federal Reserve is expected to announce the start of its taper of asset purchases this week and may push back against market pricing of rate hikes.