“We believe that the temporary boosts to the global economy are fading and we expect growth in the second half of the year to slow….We believe most of the recovery is priced into markets and we look to pare down risks and focus on quality for the time being,” said Fredrik Nerbrand, head of global investment strategy at the bank.

“Within equity markets we focus on high quality dividend producing companies; in fixed income we favour high grade credit over high yield. Similarly, we are less negative on some government debt going forward as inflation appears contained,” he continued.

He said that as trends in markets became less easier to plot, he urged investors to take a more “tactical” approach to money management in the near term.

On a regional basis, Nerbrand says he favoured the US economy among developed markets, attracted by relatively favourable macro-economic trends and a stabilization of the US property market. He said that US corporate results had been positive, with improved sales and earnings growth.