Economic growth exceeds 3.5% in the third quarter. This pace of economic growth was a slowdown from the 4.2% pace in the 2nd quarter of 2018. The growth was slightly above consensus estimates and was boosted by strong growth in inventories.

On the economic front, second-quarter growth was at slightly more than 4.1%, a level not seen in four years. We maintain a positive view of global growth and equities in general but with some downside risks increasing at the margin.

Gross domestic product (GDP) grew by a surprisingly stronger-than-expected annualized pace of 2.3% in the first quarter of 2018, representing the best first-quarter growth in three years. Meanwhile, muted wage growth reinforced the Fed’s gradual approach to raising interest rates.