If corporate profitability remains under pressure, should investors expect a recession?

The crisis period from 11 February to just before the result of the EU referendum had stemmed from a vicious circle of contracting global liquidity (itself caused by a stronger US dollar and reduced monetary stimulus) and deteriorating global growth, exacerbated by the plunge in oil prices.

As the crisis intensified, the US Federal Reserve appeared to delay the timing of expected interest rate hikes in response to market turmoil and tightening financial conditions. Investec's Brazier: 'Little room for manoeuvre' after historic vote This less hawkish stance prompted a period of US dollar weakness, in direct contrast to its earlier strength, which reversed the vicious cycle of tightening liquidity.   Mining, energy and industrial sectors are direct beneficiaries of the reflation caused by the weaker currency and they rallied sharply from February, leading global equity ...