Global economy is looking brighter after US rate cuts

Globally the economy is starting to show signs of improving following US rate cuts. Dimitris Melas, global head of research for HSBC, says: "In the US there has been significant slow down in the economic growth and the Fed has been prompted to cut interest rates." Valuations are coming back to reasonable levels. Greenspan has shown strong signals that he will continue to ease monetary policy, and many analysts expect interest rates to be reduced by 150 basis points throughout the year. Melas says the next big corporate earnings announcements could bring bad news, but he expects there to...