Global Markets Promise To Continue Positive Growth in 2017
SUMMARY. 2016 was a year of political surprises globally, which in turn made the markets go up and down with very limited predictability but increased uncertainty. With regards to the Brexit outcome, markets have gone through some major roller coaster rides during Q3 2016, but things have pretty much stabilized lately and gotten back to levels before the Brexit referendum.
We do not expect any major uncertainties in the short term, but the long-term perspectives will greatly depend on the outcome of political and economic negotiations between UK and EU that have officially started on March 29, 2017. It is still way too early to speculate on the future for the next decade; however, the future course of the Brexit talks for sure is uncertain. Britain has two years to complete all negotiations with EU.
Overall, in the very near term, the global economic drivers will remain stable; oil prices somewhat lost ground, but are expected to keep traction around 50-55 USD , currently at 48 USD, employment levels are at record highs, and interest rates still are at near record lows. As we look to the remainder of the year, we are not making significant changes to our previous projections, and we remain cautiously optimistic on overall global performance for the rest of the year. PSR