Markets shrug off 'black swans'

Nick Mustoe, chief investment officer at Invesco Perpetual, says attention has now shifted from global tensions to optimism about the US economic recovery.

Geo-political tensions, as evidenced by the unpredictable nature of civil unrest in North Africa and the Middle East combined with the disastrous earthquake in Japan, have dominated investor sentiment in recent weeks. In the days immediately after Japan’s earthquake and tsunami, global stock markets fell sharply and volatility picked up amid fears that the global economic recovery could be derailed. However, by the end of March market panic had begun to dissipate and stocks rallied on progress in containing Japan’s nuclear crisis. Despite short-term power disruption and supply-chain issu...