Potter: What will drive markets this summer?

Stock markets have had to contend with many headwinds over the past few months, be it inflationary pressures globally, unrest in the Middle East and North African region, an anaemic recovery in developed economies, continued sovereign debt concerns and a tsunami in Japan.

Despite these events, markets have been surprisingly resilient, with global equities up nearly 10% over the past six months. However, we have recently seen a rolling over in economic data. While these data generally remain positive, it does indicate we may have already seen the strongest growth for this economic cycle. As we enter the summer months, traditionally times of lower market volumes which can lead to higher volatility, our thoughts turn to what will likely drive markets. The end to the second wave of QE, set for June, has been well publicised. The US Federal Reserve has indi...