Three separate issues are playing out at a global macro level, says Isaac Poole from Oreana Financial Services. He says all are linked by one macro factor – high debt levels, which is challenging policy. Yet, in the face of that, Isaac says markets have been remarkably calm. He says policy makers have the willingness and the ability to prevent major economic or market disruption and the global economic recovery should roll on. However, Isaac says the risk of policy error is particularly elevated and that is difficult for markets to price in advance. Oreana thinks the most material risk comes from the US debt ceiling that needs lifting. Isaac says failure to do so by early October could lead to a government shutdown and potential default. Meanwhile, Isaac is also keeping an eye on the Evergrande crisis and the broader risk posed by the debt laden Chinese property sector. (Source: Ausbiz)
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