Pictet's Cole: Brexit threat simply 'an opportunity for weaker sterling'

US high yield bonds are attractive

Global financial markets had a turbulent start to 2016 but our proprietary economic indicators suggest the Chinese economy is gradually stabilising, writes Pictet Asset Management's Andrew Cole.

The US experienced some headwinds because of the strong dollar and a drop in investment in the energy sector, but it does not look like an economy about to head into recession. For example, US consumer spending is holding up well thanks to lower energy prices which boosted disposable income. In Europe, economic conditions remain broadly positive. Business investment and private consumption are gaining pace thanks to monetary stimulus from the European Central Bank and lower energy prices. Indeed, the ECB's recent bank lending survey showed a strong recovery in loan making to companies...