Potential event risks that are not fully priced into financial markets include a US Federal Reserve rate hike at any one of their three remaining FOMC meetings before the end of the year, and/or a victory by Donald Trump at the US Presidential election on 8 November. The remaining FOMC meetings are scheduled for 20-21 September, 1-2 November and 13-14 December. Futures markets currently assign a 22% probability of a rate hike at the September FOMC meeting and still only a 57% probability of a rate hike by the December meeting. The clear implication is that markets are still not fully primed for a Fed tightening this year. The three main drivers of equity markets - bond yields, earnings and valuation - all point to some caution being warranted, with the above-mentioned event risks adding to the uncertainty. Any correction seen in equity markets to date is still fairly minor.