Subdued US markets reflect anxiety over size of fiscal deficit

ON NORTH AMERICA

Martin Currie's Tom Walker says any further weakness in markets will only increase the attractiveness of the long-term opportunity.

North American markets have been somewhat subdued over the past couple of months. This is unsurprising, given the growing nervousness over the state of the economy and disquiet over the size of the fiscal deficit. Unemployment data has taken a turn for the worse, and there have even been signs of weakness in the manufacturing sector, which has been the mainstay of the recovery. News from the housing market has been poor and the deficit came into focus when the government breached its debt ceiling in May. Political deadlock has not helped. The Democrats and Republicans need to work togeth...