Fed and BofE to ease up monetary policy

As widely anticipated, the start of the Iraq war proved a catalyst for equity markets to rally, albeit starting from a depressed level ' at the low point the FTSE All-Share Index offered a dividend yield in excess of the 10 year gilt yield. A rally of sorts has been justified because some of the worst fears in terms of the duration of the war and damage to the oil fields have not materialised. Encouragingly, while the rally was initially led by financials, it has broadened out to other sectors. An optimist would argue that further recovery is achievable as the effect of aggressive re...