Until recently, inflation appeared to be in retreat. Central banks felt sufficiently confident to pause on interest rate hikes. However, a blip in the inflation figures has worried investors, who fear more US rate rises could emerge as a result. The main culprit has been oil prices, which have moved higher in response to supply cuts from OPEC, Expectations are still for a ‘soft landing’ in the US, with any recession likely to be short-lived and shallow. The UK and Eurozone face greater economic headwinds, In the UK, employment data has seen a notable deterioration in recent months. Nevertheless, while recession is more likely, it is not expected to be deep or persistent. Emerging markets have been pulled lower by the weakness of China this year. There is no imminent revival in sight for China, but other emerging markets have been doing well. Latin American countries have been cutting rates, while India has seen significant growth. There are plenty of idiosyncratic opportunities to exploit.