Findlay Nicolson survey reveals Asian investors are concerned about risks to global economy.
According to the results of the survey which polled 480 Asian investors, the majority of investors are adopting a wait and see approach due to a rising risk of a worldwide recession.
The recent inversion of the US yield curve, traditionally seen as a sign of a coming recession, caused widespread panic throughout the global markets sparking fears that the US economy may not be as solid as previously thought. This followed the Federal Reserve�s decision to hold monetary policy steady in the face of external and domestic challenges facing the US economy. In December last year, the Fed was still planning to continue its three year-long rate hike cycle with multiple interest rate increases planned for 2019.
The impact of the trade war between the US and China has caused wariness among Asian investors as Chinas slowing economy has negatively affected exports throughout the region, says Andrew Harding, Head of Corporate Equity at Findlay Nicolson.
Although some progress has been made in trade negotiations between the US and China, Findlay Nicolson economists say numerous delays have put Asian investors on edge.
According to the survey, uncertainty surrounding Brexit and the effect of its outcome on economic growth in the Eurozone is also affecting Asian investor sentiment. UK Prime Minister Theresa Mays proposed Brexit deal has already been rejected by UK parliament twice and the possibility of a second Brexit referendum cannot be ruled out.
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