Market commentary Global perspectives

How did markets do in September? Do we think that the macroeconomic factors continue to be supportive of the global equities market?

12 Oct 2017

Outlook for September 2017

The global economy is in the midst of the most synchronized expansion for a decade and we view the acceleration in global growth as supportive to equities in particular.

The outlook for earnings remains constructive, with both the Eurozone and emerging markets at earlier stages of their recovery. The acceleration in capital expenditure investment is an important development in our view, suggesting a more stable and sustainable future growth rate.

Monetary policy in aggregate also remains supportive to risk assets. The speed of any subsequent tightening relative to market expectations is likely to remain key to market prospects, but we believe that central banks will act carefully and gradually in their bid to unwind ultra loose monetary policy in developed economies.

As ever, the ability of the Chinese authorities to rebalance the economy without sparking a large increase in debt defaults and a sharp slowdown in demand is also important for investor risk appetite global. We do not expect any major policy change in the coming months.


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