No bad news from banking instils calm and produces equities rally

The outlook for equity markets remains challenging, but is more positive from a bottom-up view than ...

The outlook for equity markets remains challenging, but is more positive from a bottom-up view than top-down. The global economy is still expected to see a worldwide slowdown in 2008, although fears of recession in the US have eased following an aggressive rate cuts by the US Federal Reserve. Since the Bear Sterns bailout, the relative lack of further bad news from the banking sector has helped to calm the markets and equities have rallied with some relief as the macro-economic outlook now appears less vulnerable than previously feared. The IMF, in its latest World Economic Forecast, sign...