Finely balanced world markets as 2008 dawns

At the end of November, it has become apparent that despite a lot of bearish news, equity markets remain oversold. With the near certainty of the US Federal Reserve cutting rates at their next meeting and with other central banks likely to follow suit, stockmarkets have begun to rebound. The rebound is likely to last until around the turn of the year, but what is far less certain is how sustainable this rally will be. The markets are currently finely balanced between the hope of the Fed avoiding a recession and the fear that global growth will slow, driving earnings lower in the process. ...