Global outlook: What to watch for in 2018

Last year was a good one for global markets and it’s likely there will be more of the same this year, but the erosion of spare capacity, commodity prices and the falling rate of unemployment could spark higher inflation

The European Central Bank in Frankfurt: what will the new financial year bring? Pic: Boris Roessler/PA

Looking back, 2017 was a positive year for investor returns with global indices all posting substantial gains, led by a buoyant US stock market. With the increasingly synchronised global expansion showing few signs of slowing at present and the continuing accommodative policy from global central banks, there is little to suggest there won’t be more of the same this year.

Despite this, one of the most discussed investment topics of the past year ...