David Bulteel

“Equity markets have emerged steadier than expected from the sell-off in early August, although it is too soon to be confident that the risks emanating from the credit markets have been quantified, let alone their possible negative effects on confidence. If Central Banks are successful in restoring normal liquidity in the lending markets, the risks to growth could prove modest, allowing equities to regain the ground recently lost. Although this seems more likely than current fears would suggest, investors will remain cautious while so much uncertainty remains over where the losses caused by the delinquent loans have come to rest.”