Good news spells bad news for UK

Good news is now bad news - or so it seems. Since the Iraq war, although shares have rallied from their lows of March 2003, the UK stock market has been worried about whether the US economy would recover. In March this year, US bond yields fell to below 3.7% because of fears the country was experiencing an anaemic recovery. But recent surveys now show that US recovery is robust - confirmed by a buoyant surge in bond yields since mid-March - and is up by more than a full point to over 4.7% pa. The OECD leading indicators suggest the US economy could grow by up to 6% this year. And we a...