Markets have heaved a sigh of relief after the Fed upgraded its growth forecasts and appeared confident in unwinding its record stimulus. In Europe, polls are increasingly pointing to a coalition between the socialist SPD, the Greens and the liberal FDP after the 26 September elections, which could lead to more fiscal stimulus. These developments support our positive outlook for US and Euro area equities. We remain watchful about Evergrande’s fallout in China, although we believe widespread contagion is unlikely.
- Steve Brice, Chief Investment Officer, Standard Chartered Bank
- Marco Iachini, Cross-Asset Strategist, Standard Chartered Bank
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