The news that the vote on the American Health Care Act had been withdrawn saw equity markets pull back. On the surface it was, apparently, because of the threat to President Trump’s economically supportive agenda. That said, some of the noise about it was a bit excessive. Given the levels markets were at, some sort of pullback had been looking increasingly likely for quite a while so it should hardly have been a surprise.
Monthly Archives: March 2017
Global equity markets reacted positively to the comments from the US Federal Reserve that accompanied its latest increase in interest rates with the FTSE All-World Index closing 1.41% higher. Whilst making it clear that the US will normalize rates as soon as possible, these comments were interpreted as more dovish and that further increases will be gradual. As we have noted before, it is the pace of subsequent increases that matters more than this most recent move.
We have been broadly optimistic over the outlook for equity markets this year, and have seen them move higher across the board – in some cases very strongly. At the same time, we have been emphasizing the need to understand that there are risks and that there may well be periods of uncertainty or worse.