Outlook

It appears increasingly likely that December will mark the first interest rate increase in the US for nine years. The impact on financial markets is likely to be limited given the degree to which the Fed has tried to manage investor expectations. The Fed has also advised that the pace of any future interest rate increases will be gradual.

The issue of US interest rates has consumed investors for much of this year. The removal of this issue in December should provide support for markets leading into the end of the year and early 2016. 

Moving into 2016 markets will remain focused on the economic transition in China and how the US economy responds to the new level of interest rates in the economy. It is an environment that is likely to lend itself to higher volatility compared to previous periods of stability in these countries. 

As always, we will continue to monitor international events and provide you with an interim update should a material event occur which impacts your investment portfolio.  

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