Investors are starting to see beyond European economic abyss

While economic data generally remains weak, the recent sharp recovery in European equity markets, fr...

While economic data generally remains weak, the recent sharp recovery in European equity markets, from their lows in early March, highlights that investors are starting to look beyond the current economic abyss. However, we expect markets to remain volatile in the coming months due to a combination of further earnings downgrades, rising unemployment and ongoing credit losses in the banking system. Given the speed and scale of the economic slowdown over the last six months, recent signs of stabilisation in certain areas of the economy has buoyed investors and resulted in a sharp pickup ...