Which downside risks have increased for equity markets in 2016?

The global economic and investment backdrop was altered by the UK's decision to leave the European Union towards the end of June, writes Brooks Macdonald's Jonathan Webster-Smith.

However, following an initial sell-off, investor risk appetite recovered in July amid expectations of further central bank support, potential government fiscal stimulus and some well-received corporate earnings releases. While our view is that global growth will remain below trend but positive for the next few quarters, downside risks have undoubtedly increased. Nevertheless, economists and market commentators are divided as to the prospects from here. There are a number of major factors that determine whether global economic growth strengthens or slows from here. Firstly, policyma...