A Brexit bounce-back

The recovery in economic growth has been accompanied by a relatively benign inflationary backdrop to date. This has allowed central bankers to refrain from raising rates too aggressively, which has provided support for both stock and bond markets. As the trade spat between the US and China continues, we see a potential for negotiations to escalate further from here. While we remain confident that a deal will be reached, investors should expect some volatility in markets in the short term. If, as we expect, the UK leaves the EU with some form of a deal, this outcome is likely to deliver a bounce-back in UK economic activity.

Things to consider

The value of investments can fall as well as rise. You may get back less than what you originally invested.

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