David Bulteel

“Equity markets have emerged steadier than expected from the summer sell-off. With central banks now emphasising their willingness to help markets, the emphasis has shifted from forecasts of higher rates to worries that it is too late for rate cuts to prevent an uncomfortable slowdown. Set against these fears is the relatively firm pace of growth before the recent disruption, particularly outside the US. Furthermore, the economic impact of market crises has often been less than feared at the time. Accordingly, if central banks are successful in restoring normal liquidity conditions, any setback to growth could prove modest, allowing equities to extend recent tentative recovery.”