Q3 2018 International and Global Growth Equity Strategies
In the third quarter, issues surrounding trade policy created outsized impacts on the global equity markets. The trade war between the United States (U.S.) and China picked up considerable steam, and weakness in consumption and industrial production in China have been exacerbated. In contrast, economic conditions in the U.S. continued to outperform because of the effects from tax cuts and stimulus measures instituted earlier in the year. Elsewhere, the European Central Bank (ECB) has expressed concerns over a loss of confidence due to the trade war with the U.S., in addition to stalled negotiations with the United Kingdom (U.K.) regarding Brexit.