Europe ex UK
The bond market’s response to the European Central Bank’s (ECB) latest easing measures was immediate and broadly positive, but the implications for the real economy are harder to gauge.
At our first Secular Market Forum of 2016 former Chancellor of the Exchequer Lord Lawson locked horns with columnist Hugo Dixon over the arguments for and against one of the biggest issues facing Europe this year: "Brexit".
Mario Draghi succeeded in surprising markets with his latest salvo, but needs the support of governments and fiscal policy to win this fight.
At the recent Schroders Investment Conference in London, our panel of European equities fund managers debated the prospects for growth and value investing in 2016.
Rory Bateman discusses key issues facing European equities in 2016, including corporate earnings, commodity prices and political uncertainty. The final weeks of 2015 proved difficult for markets as increasing concerns about global growth, geopolitics and the first Federal Reserve (Fed) hike in interest rates impacted confidence.
We do not see a major turning point in the business cycle at this point, but the potential for inflation to return in Europe could see some currently out of favour areas of the market perform better in 2016.
Some investors believe that rising interest rates are bad for equity markets. These infographics, however, show that historically in the year following the initial lift-off for rates equity markets have, on average, performed robustly.
Steve Cordell sees the business cycle remaining in the expansion phase in 2016 and discusses why economically-sensitive domestic consumer stocks should fare well in Europe.