The Global Economy in 5 Charts

The latest Morningstar Markets Observer reveals how global markets have performed so far this year and which stocks are now overvalued

James Gard 15 August, 2018 | 2:51PM
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The IMF expects the world economy to grow by 3.9% this year and next, despite rising oil prices and trade tariffs. The stand-out success of the past quarter is the United States economy, which has grown strongly over the three months. The 10-year government bond yield has ticked up, now paying out considerably more than its European counterparts. 

In terms of stock market returns, Russian companies outperformed despite geo-political headwinds. Australia equities also fared well, but the stock market is now considered to be overvalued according to Morningstar analysts.

Russia Outperforms

Most stock markets across the globe covered enjoyed positive returns over the three months to the end of June, some in the double-digits. Russia gained nearly 32% in the period, the biggest rise among countries covered by Morningstar analysts, while Greece equities fell more than 9%. Robust economic growth propelled US and major European stock markets, but Spain and Greece lagged because of ongoing debt and political issues.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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About Author

James Gard  is content editor for Morningstar.co.uk

 

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