Can investors navigate the rest of 2016 safely?
Well into the second quarter, markets have recovered after a torrid opening to the year, however sentiment remains challenged by the lack of a strong investment case to rally firmly behind.
With the arrival of June, a critical month for markets featuring the Brexit referendum and a Federal Reserve meeting, the FT asked market commentators how the rest of the year will pan out.
What events or data will shape markets for the remainder of 2016?
Brexit and Federal Reserve meetings figure prominently, while China lurks in the background.
“The question is whether the Fed overshoots,” says James Bateman, head of portfolio management at Fidelity. “There is a danger that the Fed may be caught between what’s right for the economy and what’s right for markets, bowing to pressure to please the latter.”
John Bilton at JPMorgan Asset Management is optimistic about global growth and thinks that will aid dollar consolidation, spurring risk appetite, but says UK investors will “find it difficult to focus on much beside Brexit risk”.
Commentators also worry about China across a multitude of areas — from a growing non-performing debt problem and restructuring of State Owned Enterprises, to growth data and its capital account.
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