All eyes are once again on the Fed and the ECB

COMMENT

There is a reasonable private sector-led recovery underway in the UK, US and other parts of the advanced economies, and decent growth continuing in most emerging market economies.

Interest rates remain very low and inflation is under control. Most governments want to promote growth, so these should continue to be good conditions for investment in shares. Despite this, equity markets have doubts hanging over them. The US, which has performed well, is no longer cheap. Profit growth has relied on lower interest charges and cost reductions more than on turnover growth. The US is therefore mesmerised by the Federal Reserve. Will it start to taper its money creation activities sooner? Can the economy and the market be sustained if the Fed switches off the extra money...