We see a rate hike in December and three more in 2018 as the Fed keeps its word.

In Asia, the main events that mattered was the unveiling of the 19th Politburo Standing Committee (PSC) in China and bank recapitalization by the Ministry of Finance in India.

Europe’s flash PMI data will also let us know whether the positive momentum of the European economy is holding up.

On macro, the market will probably look to US industrial production, the Philadelphia Fed manufacturing index and the UK labour market data to get the latest indications of the strength of the global economy.

The impact of the tax plan is clearly a policy of fiscal expansion which will boost growth, inflation and market determined interest rates.

The message from the ECB will be closely followed since they are next up on the calendar now that the Fed and BoJ have got their meetings out of the way.

Aside from the US, UK surprised with a much stronger-than-expected August inflation data as well.

The US began to slow in Q1 and now some softness is appearing in data in Europe and Asia as well.

We expect a return to the unconstrained LTROs but will soon discover if we are right or not.

Even without a serious correction, returns would need to slow to circa 4% per annum for the next two years for the market to return to its long term trend.

Equity markets fell and volatility returned to markets due to the sabre rattling between North Korea and the US.

Putting it all together, the macro environment appears to remain sanguine, on signs of steady global growth, subdued inflation and benign central bank policy.

Now that the banks are fit for purpose once more, regulators are relaxing regulation, basically preparing them for resumption of normal service.

Goods price inflation is particularly weak, in deflationary territory in fact, with headline indices being saved only by services inflation.

At the half year mark we have buoyant equity markets, tight credit markets and even more effervescent valuations.