Global equities at record highs on better growth outlook
Despite widespread political uncertainty following the Brexit referendum and the US election (and ahead of key European elections), the global economy appears to be growing at the fastest rate since 2014. All the major economies are expanding, in what has been called a “synchronised upswing”. The Citigroup Economic Surprise Index (which measures how economic data performs against expectations) was hovering around the highest level for developed economies since mid-2010 in January. Deflation fears have also fallen away, as headline inflation rates in the developed world are moving towards 2% on the back of higher commodity prices. Even deflation-prone Japan saw prices increasing over the past year.