‘Unusual uncertainty' in US markets may continue

ON NORTH AMERICA

Mixed economic data, unemployment levels and the deficit all contribute to an uncertain outlook, says Martin Currie's Tom Walker

For most of this year, US economic data has been the main focus of attention for investors worldwide. Markets have flinched at each negative datapoint and regrouped with each positive, as the prospect of the dreaded ‘double dip’ recession advances or recedes. Accordingly, what Ben Bernanke describes as ‘unusual uncertainty’ has reigned. That uncertainty is unlikely to dissipate just yet. Economic data remains mixed; the US will have to deal with its deficit eventually; and unemployment has yet to show any sign of real improvement. But it does feel as though some of the foundations of ...