Equity rally brings a hint of hesitancy to optimistic forecasts

The rally in the UK equity market since the low point reached on 3 March has surprised even some of the most hardened optimists.

Although June proved a month of some consolidation after the heady rises seen in April and May, a more broadly based rise began again in July with a successive series of daily rises not seen in over four years. Some of this impetus has come from the United States, where the second-quarter reporting season has seen a number of key bellwether stocks, such as Caterpillar, Apple, Intel and Goldman Sachs, posting significantly higher estimates than the consensus analyst view. A further impetus has come from China where estimates of economic growth have steadily increased as the year has progr...