Analysis

The European equity market rally shows no signs of abating. Bulls are in the ascendency, with their appetite for risk sending stock indices to new highs for the year in September. Banks have led the charge, as a number of lenders reported excellent quarterly...

The rally is well established. Small and mid caps have been at the forefront of this bull market which was ignited by the recent panic slashing of interest rates - sorry I mean concerted monetary easing to head off the 2008/09 world banking crisis.

Equity markets around the world have continued to rally, fuelled by liquidity and some signs of improving economic data.

Dividend cuts across the board over the past year are having an impact on UK Equity Income sector's returns despite stock market rally

At a recent Schroders conference, it became clear to me that both clients and fellow investors were drawing the conclusion that my team reached some time ago: all roads now lead to emerging markets.

We continue to be bullish on the outlook for US equities over the next 12 to 18 months, but also continue to believe an intermediate market correction is increasingly likely. The only question is how severe it will be.

Investors' risk appetite has returned. General equity markets have recovered strongly in recent months.

Despite the rally in risk assets over the past six months and talk of an economic recovery, some of the biggest macroeconomic questions remain unanswered.

Global emerging markets attract strong investor interest despite high risk reputation

The attempted harmonisation of European economies through monetary union cannot be described as an overwhelming success story.