Although global growth momentum has slowed, emerging market economies and markets remain firmly in mid cycle. When we consider the outlook for EM equities in 2019, we don’t worry about late-cycle constraints. Nor do we worry about valuations-after last year’s battering, valuations are quite attractive.
Since the start of 2018, the European economy has continued to disappoint investors. A multitude of factors, both external and domestic, have contributed to a backdrop of slowing economic growth. A revival in growth in China is the most likely catalyst for a turnaround—but perhaps later in the year.
The Bank of England (BoE) Monetary Policy Committee (MPC) today voted unanimously to keep interest rates at 0.75%. This was in-line with market expectations and as such there was a muted market reaction to the announcement.