Economic Reports.

Looking ahead, global markets face a more balanced set of tailwinds and headwinds than was the case a year ago.

While the sudden increase in market volatility in February raises concerns, we do not believe that the bull market in equities has yet come to an end.

Aside from the February turbulence in equity markets, global economic growth should hold up well and inflation should remain low in 2018.

Although we believe price pressures will ultimately remain contained in 2018 and even into 2019, there is scope for expectations of inflation to rise further as economic growth continues and central banks move towards monetary normalisation.

Although the economic outlook is positive for 2018, we are fully aware that sharemarkets have risen sharply in recent years and valuations are high. Consequently, we will continue to monitor economic and political developments for any negative signals.