AXA IM's Hooper: Moving from a time of assured support to one of uncertainty

Trade wars a key risk

Buoyant equity markets have benefitted from the ongoing synchronised recovery in the global economy and corporate profitability, boosted by US tax reform, the return of the commodity capital expenditure cycle and balance sheet improvements in the financial sector.

Nevertheless, markets face a number of potential headwinds in the period ahead: a flattening yield curve, global trade wars and divisions in the eurozone, to moderating growth, and a cooling corporate upgrade cycle.  The gradual withdrawal of surplus central bank liquidity is underway as the cost of money normalises to a higher level and quantitative easing turns to tightening. Sell signals: Five fund buyers reveal their key recession indicators We are moving from a time of assured support to one of uncertainty, trusting policymakers to successfully deliver their exit plan. Relativ...