WHAT WILL DRIVE MARKETS IN 2018?

CIO MONTHLY | DECEMBER 2017

What are the two key dynamics that Australian investors should look for next year?


2017 has been an excellent year for investors, with returns outperforming expectations and risk events fizzling out, despite their potential for disruption. The pick-up in global growth, improved global corporate earnings, deleveraging in Europe, and the promise of US fiscal reform have been some of the key drivers of this.

In addition, emerging markets have been particularly strong, with Chinese and Indian growth surpassing expectations. Also, a rebound in commodity prices has helped countries like Brazil and Russia, and a weaker US dollar and low rates have aided developing Asia.