Turbulent markets

Our outlook for the global economy in 2016 is relatively positive:

• US Federal Reserve is likely to raise interest rates in a slow and gradual manner in 2016.
• China's policymakers have taken action to prevent a slowdown in the Chinese economy.
• European Central Bank is likely to continue with its programme of more accommodative monetary policy.
• UK is looking at growth of 2.5%.

Bond markets, however, are likely to be challenging.

One of the key messages for 2015 has been intervention in financial markets by central banks.

These large forces are contributing to moving bond markets and that is likely to stalk investors in 2016, even though the economic outlook is relatively positive.