Analysis

Recent market volatility should serve as a reminder that while the risk of a prolonged recession has been averted, there is still uncertainty about the strength of recovery and the possible exit strategies from unprecedented fiscal and monetary stimulus...

Recent strong price gains across commodity markets, especially base metal equities, now urge caution to some degree.

The past eight months have been remarkable for European equity markets.

Gold is entering a new era. In the past gold has been thought of primarily as a safe haven, but now it is recognised as a preserver of wealth by both institutional and private investors, relevant whatever the economic weather.

Positive net retail sales over seven consecutive months show investors are shifting back towards sector

Increasing optimism over the future direction of the economy helped propel the UK equity market to a record quarter.

While the rest of the developed world benefited from significant amounts of liquidity injected via Quantitative Easing (QE) programmes, Japan had a comparatively tight fiscal policy.

Conviction is growing that a recovery is underway and equities have pushed further into new territory for the year.

With fiscal and monetary stimulus appearing from all directions, the US GDP hit a positive 3.5% in Q3 2009, most likely indicating the end of the recession.

Twelve months ago, in the aftermath of the collapse of Lehman Brothers, it looked as though the liquidity crunch could bring down the world's financial system.