Dear all,
Recent economic indicators give no cause for optimism.Although the state of the global economy does not seem to be the key determinant of investment decisions, the current climate certainly has dampened risk appetite.The brutal slowing of global trade and economic activity at the end of 2008 has triggered massive downward revisions of earnings forecasts.After getting off to a difficult start,2009 will be marked by recession as the global economy contracts.
Although positive GDP growth is forecast in 2010,it is expected to be well below potential and apparently does not account for the full impact of the fiscal stimulus plans.However, statements by the US Federal Reserve and G10 group of major central banks are gradually showing more optimism.
For example, Jean-Claude Trichet , the G10's spokesman, has affirmed that global growth will probably be around zero in 2009 before picking up in 2010.
Investers however still seem unconvinced and are focusing on the bad news, such as the situation in Eastern Europe and fears that some euro-zone countries may have difficulty funding thier budget deficits.
Yours
Dleep
