The correction we are seeing is due to strong US growth and concerns about a pick-up in wage inflation, fuelling the prospect of interest rates rising faster than forecast.

Ed Smith says: “While India may be the ‘new China’ for some investors, given it is where China was in terms of growth at the start of the new millennium, China is to remain the largest Asian growth engine over the next 20 years, and should continue to command investors’ attention.

We think it’s prudent to discuss the possible escalation of a global trade war and any impact it might have on our portfolio. Recent volatile market movements highlighted just how sensitive the market has become to protectionist rhetoric, certainly in the short term.

This week will be dominated by three major central bank meetings, and investors asking if the US Federal Reserve will hike rates, if the ECB will end QE and if there will be any action at all from the Bank of Japan?