QE2-inspired optimism gives way to scepticism

ON UK GROWTH

SVM's Neil Veitch says there has been a dramatic reversal in semtiment following the recent run-up.

September and October’s QE2-inspired optimism has given way to renewed doubts regarding the sustainability of the global recovery. Although a consolidation in share prices was expected following the recent run-up, the reversal in sentiment has been dramatic. Markets have been hit by sovereign debt concerns, Chinese tightening, and a sell-off in bonds. While these factors have dominated, underlying data has continued to surprise and the global economy appears to be recovering. The pace of that recovery differs across regions and individual countries. In the near term, the UK and dev...