Low interest rates and central government support have been a key element for global financial markets for many months now. But what next? Julian Broom, our Chief Investment Officer, considers the latest developments in world markets.
It’s safe to say that global markets appear to be weathering the storm, supported by the sustained cushion of low interest rates and government assistance. Overall it’s a strong enough picture, although time will tell as to whether price rises will be sustained, and what the impact on interest rates will be into next year and beyond.
As we turn towards the future, markets around the world look to be on the mend. The USA is enjoying a boost, although the Fed’s attitude to inflation will see how that bears out over the longer term. European markets are also starting to expand well, driven in no small part by the vaccine rollout which has gathered significant pace.
In contrast, Asia is starting to lag behind, with partial lockdown continuing and vaccine rates trailing.
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