The global economy continues to benefit from a backdrop of strong growth momentum, subdued inflation and low market volatility. Overall, we downgrade US and European investment grade (IG) credits to underweight from neutral, although we remain neutral Asian IG given relatively attractive yields on offer

Meanwhile, relative to the opportunity set, risk premia associated with equities remains attractive. Both current valuations and macro fundamentals suggest we should add to our global equity allocation. We upgrade this asset class to overweight from neutral. Elsewhere, valuations are still extreme across global developed markets bonds where we remain underweight. Finally, we continue to emphasise emerging markets equities and local currency debt

Source: Bloomberg, Thomson Financial Datastream and HSBC Global Asset Management Limited, data as at 31 August 2017