Recent market trends

摘要

After a turbulent year characterised by sluggish macro economic developments, the global economic recovery at present is again threatened by intensifying strains in the euro area and fragilities elsewhere. Financial conditions have deteriorated, growth prospects have dimmed, and downside risks have escalated. The euro area economy is now expected to go into a mild recession in 2012 as a result of the rise in sovereign yields, the effects of bank deleveraging on the real economy, and the impact of additional fiscal consolidation. The rising price of oil does not support global markets either, especially in Japan given its growing reliance on energy imports following nation-wide nuclear power plant shutdowns.