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Article | 14 December 2017 | Your views
We believe the global economic growth outlook remains strong.
The UK is a slight outlier due to Brexit uncertainties clouding the horizon, but most other regions look likely to continue enjoying the healthy economic backdrop. This has the potential to benefit global stockmarkets, provided companies can deliver continued earnings growth to support relatively high share prices in many markets.
Central bank actions, in particular those of the US Federal Reserve, will remain a big focus. In the US, quantitative easing (where financial institutions are given access to cheap money) will gradually be reduced in 2018. Markets have become used to an environment where quantitative easing is prevalent. As this changes – and particularly if it is reduced quicker than expected – we believe there is the potential for increased market volatility (the rate of change up or down of asset prices).
To view the full market outlook, with our views on the prospects for different regions, download our client-friendly pdf here.