Analysis

The global recovery is well in line with forecasts for 2010, 2011 and 2012 looking for growth of around 4% in each year.

Following the sharp market rally of 2009, emerging markets have experienced something of a flat start to 2010 in sterling terms.

Since the start of the year, sterling has weakened materially against the US dollar, and slightly against the euro. For owners of UK equities this is a mixed blessing.

Following the strong performance demonstrated by most main risk assets during 2009, the start of 2010 saw volatility return to the markets.

Management teams of US companies appear to be in wait-and-see mode as they can still see several hurdles the economy needs to get over in order to ensure future growth.

The near-term outlook for sterling credit continues to look positive, encouraged by an increasingly robust corporate sector, a slowly improving economy, and a favourable market environment.

Global listed property securities provided good returns for investors in 2009 and markets rallied as the global economy responded to government stimulus measures.

Investors return to sector as region's stock markets rebound strongly from sharp falls in financial crisis

From an economic viewpoint, it is difficult to disagree with the consensus view UK economic growth will be challenging for the next couple of years.

Many market commentators started the year tipping Japan as a contrarian, laggard equity investment for 2010.