Growth to remain modest at best

Earnings forecasts and current valuations, allied with comfortable levels of liquidity, suggest UK equities are ripe for an upwards surge that could carry the FTSE 100 through the 7000 mark in a couple of months. However, it is not just the traditional quiet summer that is likely to stop this happening. For one thing the jury is still out on whether the technology correction is over or still has some way to go. Whatever the decision, it will have a knock-on effect. All market action until September is going to be coloured by indications of whether the US economy is headed for either a s...