The bronze Charging Bull in the financial district of New York City.

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LONDON — With Covid-19 cases on the rise due to the surging delta variant and a range of macroeconomic shifts occurring, the global market narrative has moved from “goldilocks to growth scare,” according to Barclays.

In a research note Monday, the British lender suggested hedging remains warranted for investors given the swirling crowd of downside risks, but argued that the recent sharp reversal of the reflation trade was “overdone.”

“The combination of data no longer delivering positive surprises, burgeoning evidence that supply and labour shortages could mean stickier inflation, China’s increasingly determined crackdown on various industries, and increasing risk from the COVID delta variant have coincided with enough force to give markets a growth scare,” said Emmanuel Cau, head of European equity strategy at Barclays.

Cau…

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