Coronavirus has dominated discussion of the immediate economic outlook. At the moment, the consensus’ view (as expressed by, among others, both Australia's and New Zealand’s central banks) is a short, limited impact on local and global economic activity. But nobody can be sure…

Assuming the virus does not have major consequences, risk assets could perform well: Global fund managers think the equity market will not peak before the September quarter this year…

The economic outlook has perked up, due to strong economic data out of the U.S., modestly better data in the rest of the world, and, critically, a trade agreement between the U.S. and China, which, with the British election results, has helped defuse investor anxieties about global growth. .…

While geopolitical risks remain high, at the moment investment sentiment has turned more positive on a potential (if only partial) resolution of the U.S.-China trade disputes. Growth assets have consequently benefited, while the prospect of a pick-up in world growth, and reduced demand for defensive boltholes, have led to sell-offs for bonds and bond proxies.…