World markets have further to fall, says Merrills' O'Neill

World markets will fall from their current level before reaching the point where they stabilise prior...

World markets will fall from their current level before reaching the point where they stabilise prior to recovery, according to Merrill Lynch Global Wealth Management. Portfolio strategist for Merrill Lynch Bill O'Neill claims they have hit a soft spot, brought about by Chinese state demand for raw material drying up. However he adds the country could potentially kick-start a further rally if it opted to spend more on combating recession. "It was inevitable that markets would hit a soft spot, it really was a question of what the trigger would be and it looks like it is China, as a raw m...