Cazenove's Jeffrey: Positive signals at last

Following an apparently disappointing outcome in 2012, there is greater optimism over growth prospects for the UK and other economies in 2013.

Despite a fiscal tightening in the US, albeit not as aggressive a tightening as it could have been, recent indicators have pointed to the economy gaining momentum after a dull final quarter last year. In Europe, the same is true of Germany, and there are also signs that the deterioration in conditions in the peripheral eurozone countries is beginning to come to an end. A reacceleration in China will probably prove the most important differentiating feature this year. Both Germany and the US should benefit, and recent indicators suggesting manufacturing activity in those countries is p...