It was an extraordinary week for financial markets, with central banks taking centre stage. The Reserve Bank of Australia had a major impact on money markets, causing central banks of the US, UK and Europe having to take extra steps to calm investor nerves.
The Bank of England added to this by keeping base rates on hold, despite wide expectation of a rate rise at their November meeting.
Inflation means that rates are still set to rise in the US and UK sooner than the market currently thinks, but pressures are significantly less for Europe and Japan.
Despite strong exports, China remains a concern; and higher rates are a headwind for equities, but we think the bull market in developed market equities has further to run.
Past performance is not a guide to future performance. The value of investments and any income derived from them can go down as well as up and investors may not get back the original amount invested.
The information, opinions, estimates or forecasts contained in this document were obtained from sources reasonably believed to be reliable and are subject to change at any time.