Guide to the Markets - J.P. Morgan Asset Management

Guide to the Markets

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Key takeaways:

While the growth momentum appears strong globally and particularly entrenched in the eurozone, the post-Brexit fallout is continuing to be felt in the UK, manifesting in subpar economic momentum. The outlook for 2018 in terms of consumer, business and central bank activity are all highly dependent on the Brexit negotiations, so the growth engine is unlikely to pick up until we finally have the clarity to inform investment decision-making.

Guide to the Markets presents a wide range of macroeconomic data that can help liquidity investors assess the economic backdrop and position their portfolios, covering issues such as:

  • Post-Brexit growth has been relatively poor, but it has continued to outperform the Bank of England’s expectations in 2017. Lead indicators such as the PMIs are clearly pointing to steady, growth, which could justify further tightening from the MPC, although Brexit-related risks continue to cloud the outlook.
  • Since the government triggered Article 50, progress has been slow, but both sides appear willing to get a deal done. With a deadline of March 2019 for all negotiations to be finalised, all parties need to reach a transition agreement that can buy them more time to conclude the complex trade agreements involved.
  • The UK consumer-the main driving force behind the pre-Brexit growth narrative the once-buoyant -looks set to stay subdued due to Brexit-related uncertainty including squeezed real incomes and the slowdown in property prices.

As you consider these important topics, we will be happy to share our market views and tailor liquidity solutions to best meet your needs.