What are the prospects for equities?

ON UK GROWTH

Any headlines regarding economic prospects for the eurozone region over the past 18 months have made for gloomy reading.

Looking further afield, however, the economies of China and the US are painting a very different picture. Over the past three months, global equities have witnessed a significant rally, helped by positive economic data from the US for employment and manufacturing. Investors have been further encouraged by China’s fourth quarter GDP numbers. These proved better than expected, brushing aside fears of a sharp slowdown in economic growth. Putting this into context, the economies of the US and Asia account for over 50% of global output, compared with the eurozone area, which accounts for 2...