Outlook for Investment Markets
The strong rebound in global equity markets in October has run out of steam more recently, as markets finally confront the imminent likelihood of the Fed raising interest rates, and as investors continue to fret about growth in important emerging economies. The global economic outlook is still reasonable, but there is a long list of uncertainties that could derail investor confidence in equities. In New Zealand, recent data clearly point to a pickup in the economic outlook from the low levels of business and consumer confidence earlier this year, though, as with the global economy, there are risks (notably China and El Niño) that might derail what is likely to be a moderate rate of economic growth.
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