”The likely negative impact to the global economy of China’s slowdown has had ramifications across the risk markets, just as markets were healing following the Greece crisis in the summer. In the midst of all of this, it is sometimes difficult to determine what is reality and what is merely noise.

The reality is that as expected, China has slowed down and so will many other emerging markets. Brazil and Russia are already in a recession whilst India is leading the rest of the emerging market pack but is not big enough to outweigh the China effect.  It is important to be extremely selective within emerging markets.

The good news is that in the developed world, the US economy is growing steadily and gradually eroding the slack in the economy, while Europe continues its recovery. Japan flatters to deceive whilst the UK has emerged as a star performer. Nevertheless, the global economy is losing momentum, largely due to the emerging market slowdown.”

Thanks to our friends at London & Capital