This note looks at five charts and a table that are critical to watch this year regarding the outlook for the global economy and markets.
The key points are as follows:
After a strong rebound since December share markets are at risk of a short-term pull back. However, despite this we see this year as being a decent year for share market returns.
Five key global charts to watch as to whether this will be the case are: global business conditions PMIs; global inflation; the US yield curve; the US dollar; and global trade growth.
US recession indicators remain ok, but the yield curve is worth watching.