While there are indications that the pace of global economic growth is slowing, it still remains positive overall. This suggests that low interest rates are likely to continue for a while yet, in order to provide a supportive backdrop, particularly while inflation remains relatively subdued across developed economies. This therefore provides a supportive global background for both fixed interest and equity markets, counterbalanced in the case of the latter by some rather mixed third quarter results from companies. The so called trade wars between the US and China in particular, which are also engulfing all of Europe, are without doubt holding back growth: we remain of the view that in the end compromises will be found particularly given that 2020 is an election year in the USA.

As for the UK economy, additional uncertainties remain over and above those posed by general global trends. We aim to expand on this in our New Year newsletter.