Political volatility exacerbating concerns

Global equities have weakened recently, held back by recurring concerns over monetary tightening. Improving economic newsflow, especially in the US and China, and surging crude oil prices, which will push up inflation in many countries, exacerbated these concerns. Fears of more terrorism, a prolonged conflict in Iraq and political uncertainty caused by elections in the Asia Pacific region also contributed to sharp falls across many markets. The Indian stock market's reaction to the surprise election victory of the Congress Party is the most recent example of events currently affecting gl...