Growth places global equities under pressure

Stronger than expected US growth and UK inflationary pressures are placing pressure on the longer-te...

Stronger than expected US growth and UK inflationary pressures are placing pressure on the longer-term outlook for global equities, according to Baring Asset Management. Andrew Cole, director of Barings’ asset allocation group, said latest global research has revealed a dilemma for investors. “Although the consensus is for the US Federal Reserve to cut interest rates sometime over the next three months, we believe interest rates are likely to be kept at the current level until the summer,” he says. “With the absence of sharply lower growth and rising unemployment, we cannot see the US...