PROSPECTS: H2 2017: Global economy
Despite concerns over elections, leadership changes and economic risks, equity markets have strengthened on expectations of higher GDP growth and inflation while bond markets have remained steady. Economic activity has improved across the world, underpinning confidence. Trade flows have picked up, and the oil price has settled higher than in the first eleven months of 2016. The uncertainty surrounding US policy -- notably interest rate trends -- remains a global concern, but near-term risks are specific rather than systemic.