A monthly round-up of global and local market trends
Investment review
Waiting on Europe
Equities rallied mildly in July as investors entertained hopes
that policymakers might respond more effectively to mounting
evidence of a slowing global economy. Bonds and gold also made
gains on fears of a new eurozone crisis – a schizoid
response that faithfully reflects the fragility and polarised
nature of investor sentiment in current market conditions.
World
Global financial markets recovered somewhat from their midsummer
doldrums on speculation that central banks might be able to help
orchestrate an effective policy response to the deteriorating
eurozone crisis. The European Central Bank, the Federal Reserve and
the Bank of England buoyed equity markets temporarily with hints of
further monetary stimulus and statements suggesting that they are
willing to act to prevent a disorderly breakdown of the European
single currency. The period of denial last year, when
