Week Ahead | Climate Commission Report & Z Energy Global markets recovered overnight (S&P 500 index +1.6%) after the worst week since November, as investors focussed on the hope for economic recovery. Last week’s losses in equity benchmarks were widely attributed to deleveraging amongst hedge funds and other leveraged investors, some of which incurred large losses from the surge in GameStop and other unloved stocks.  But there are signs that the deleveraging is already well advanced, with Bloomberg reporting that short interest in GameStop had been slashed, to 40-50% of the amount of stock on issue, compared to more than 100% in mid-January. Some investors may be nervous that the wild trading could trigger a systemic event or further selling, but we do not think this is a material risk for markets. For the week ahead we think market attention is starting to refocus on other themes, including US fiscal stimulus, vaccine roll-out and corporate earnings. The m...