Investment Markets Commentary to 30 September 2019
Financial markets have delivered strong returns for investors so far in 2019, reversing the weakness in share prices seen in the final months of 2018. Bond markets have been reacting positively to subdued inflation and declining economic growth forecasts and stock markets have been supported somewhat by lower interest rates. There have been several reasons GDP expectations have been reduced, most notably the adverse impact of the trade war between the US and China; in addition, Brexit uncertainties and ongoing difficulties for the European car industry, as consumers seemingly turn against diesel, have damaged confidence, particularly in the manufacturing sector. Despite these issues, both we and economic forecasters expect this prolonged business cycle to continue.