As a result many countries are easing monetary policy to stimulate growth. Although in general Asian companies appear attractively valued there is a continuing need for businesses to issue new equity in order to strengthen their finances. While the resulting abundance of supply may temper the performance of the region's markets in the short term, further corporate restructuring should be positive for the longer-term outlook. UK UK equities have not escaped the unsettled conditions seen elsewhere and are currently some way off their market highs. While growth is slowing somewhat, the situation is not too problematic.
Inflation remains below the central bank's target.
May. These reductions in rates could prove to be positive for the stock market and corporate bonds. The outlook for smaller and medium-sized companies remains positive and the overall environment for stock picking has improved. The stock market has experienced increased volatility in recent months. As a result, more traditional companies have tended to outperform technology and telecommunications stocks. Economic growth is slowing in Germany as higher energy prices have dampened consumer demand and exports have declined in response to weaker demand abroad.