Earnings growth to slow but still able to support equities

Momentum in global markets and a positive corporate environment have fuelled steady performance by UK equities over the course of 2005. The FTSE All Share rose some 15%, markets globally have benefited from the return of positive sentiment towards equities and by December the UK market was touching highs not seen since 2001. Can this momentum be maintained as we head into 2006? While the coming year is likely to be positive for the UK market, we believe returns will not be quite as strong. Macro- economic themes are likely to weigh on market performance, particularly over the initial pa...