Global Liquidity Conditions Major Markets, October 2015

Liquidity risks remain elevated. Our Global Liquidity Index (GLI™) for September 2015 is stuck at low levels of 39.0 (‘normal’ range 0-100), or close to the low August reading. Such poor liquidity underscores a ‘Risk Off’ investment environment characterised by high volatility and by the likelihood that economic activity levels will weaken noticeably over the next 6-12 months. We have already warned that low and falling US liquidity levels already point to a modest economic recession by early 2016.