Federal Reserve

FINANCIAL MARKET

A move out of safe-haven assets has seen government bond yields spike, but Tim Gardner, co-manager of Legal & General's Multi-manager fund range, says they should not be dismissed just yet.

Federal Reserve chairman Ben Bernanke has signalled the end of QE in the US, saying it would be "reckless" to pump further stimulus into the economy unless it sees a sharp deterioration.

ON NORTH AMERICA

The US economy risks being in a state of gridlock for the crucial last few weeks of the year, irrespective of who wins the November election, according to a leading independent American political analyst.

The managers of the £98m Melchior North American Opportunities fund have reversed out of defensive names into more economically sensitive sectors, following the string of positive economic data that has emerged from the US in recent months.

Fund managers are snapping up cheap portfolio insurance ahead of an expected market pull-back, after the VIX index hit pre-recession lows in March.

Markets moved modestly higher last week, which helped stocks to return one of the strongest first quarters in history.

ON NORTH AMERICA

FINANCIAL CRISIS