Debt haunts European equity markets

By Roderick Marsden, manager of JO Hambro Capital Management European Fund Towards the end of 2001, European equity markets began to recover sharply driven by lower interest rates, resilient consumer spending and hopes of an industrial recovery during the first half of 2002. Perhaps it was asking a lot, but most market watchers expected bourses to push higher in January. They didn't, which leaves us to ponder whether we have merely paused for breath in the early stages of a recovery or something more sinister is afoot. Of course, the main issues worrying equity markets everywh...