The Weekly Brief (09 November 2015)Contributor Global Markets Insights Strategy Team
October was a good month for equities but most markets outside the US remain some way below their highs for the year.
We think that this is probably the start of a year end “Rudolph Rally” and that the opportunity to add to equities hasn’t been missed. The latest Eurozone PMIs have shown no sign of a slowdown in European growth. The US ISM surveys have rebounded with the non manufacturing new orders component bouncing back strongly to 62, suggesting US growth remains robust. The IMF forecast that Chinese growth will slow next year but still remain healthy at over 6% and that global growth will actually accelerate to 3.6%. Furthermore the ECB have made clear that they could deliver an early Christmas present in the form of additional stimulus, whilst a Fed rate rise would signal US economic strength.
Year to date equity performance, indexed to 1 Jan 2015
Source: Thomson Reuters Datastream, J.P. Morgan Asset Management. Data as of 4 November 2015.
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