According to Schroders, the US economy will make a soft landing, and moderate profit growth would underpin the medium-term equities markets. In Europe, lower inflation and rate reductions by the BoE and ECB are helping consumers, especially in Spain and the UK. Real wage growth and surplus savings should encourage consumption in the region. The August correction caused equities to derate. However, thanks to strong earnings and prospects of looser monetary policy, markets soon recovered.

Amid this backdrop, Schroders has five takeaways for global equity investors

1) Markets outside of the US continue to benefit from headline valuations

2) The potential for market forces to expand, presenting opportunities for active investors

3) Japanese businesses are still in a strong position to provide cash back to investors.

4) Markets may see further volatility around the US elections, but fundamentals take precedence.

5) Increased scrutiny around AI monetisation

Read the full insights here.