Business Insights Blog

Global growth looking healthier

Despite numerous geopolitical threats (Eurozone elections, tensions between the US and China, North Korea, etc.), worries about the demise of the so-called "Trump trade" and shares being overbought and due for a correction at the start of the year, share markets have proved to be remarkably resilient with only a minor pull back into their recent lows.

This despite a more significant fall back in bond yields. Partly this is because the geopolitical threats have not proven to be major problems (at least so far) and Trump remains focussed on his pro-business policy agenda (he has already embarked on deregulation and his tax reform proposals – while lacking in details – indicate that tax reform remains a key objective). More fundamentally though, markets have been underpinned by an improvement in global growth. This is likely to continue.


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*This blog is a direct excerpt from Oliver's Insights. You can view Oliver's Insights and learn about Dr Shane Oliver at the AMP website.

Oliver's Insights is a regular update from Dr Shane Oliver, Head of Investment Strategy and Chief Economist, AMP Capital. In Oliver's Insights, Dr Shane Oliver explores the latest issues regarding financial markets and the economy.

Any advice in this article is of general nature only and does not take into account the objectives, financial situation or needs of any particular person. Therefore, before making any decision, you should consider the appropriateness of the advice with regard to those matters.

Comprehensive Financial Solutions Pty Ltd ABN 42 086 989 639 as Trustee of the The Mobbs Family Trust is an Authorised Representative and Credit Representative of AMP Financial Planning Pty Limited