Markets - Global Overview

Local emerging market debt continues to rally, while the ECB's decision to raise interest rates looks set to impact consumer spending and Asian markets have yet to regain the growth rates enjoyed before the 1997 crash

EUROPE - 1 The recent European Central Bank interest rate rise was entirely anticipated but basic consumer goods could struggle from here, according to Crispin Longden, manager of European Assets Trust. Longden said that after raising the key refinancing rate for the euro for the sixth time in the space of one year to 3.75% in March, Jean Claude Trichet, president of the European Central Bank, was signalling clearly that another 25 basis point rise was on the cards for June. "What investors have to consider is that if inflation is running at 2%, the rate increase to 4% means that real ra...