Market movements

United States: Overweight The US rocketed ahead during the third quarter, boosted by increased levels of business investment and consumer spending, which jumped by 3.5% year on year during the three months to September. More importantly, capital expenditure has continued to increase. During Q3, business investment was up 6.5% year on year, helped by greater spending on equipment and computer software, and the consumer's demand for US products. US share prices are trading around fair value, assuming profits are upgraded 13% in 2004 and 6% year after. This implies an annual return of 8% in...