Outlook for Investment Markets
Investors headed for safety over the past month, because of global political instabilities and the Japanese disaster. Assets seen as safer (particularly government bonds) benefitted, while riskier assets (shares and some currencies, including the $A) were sold off sharply. Anxieties have receded more recently, and the flight to safety has to a degree reversed. While the level of uncertainty remains high, the central outlook for strengthening global economic activity remains in place, although reined back by high oil prices and Japan's setbacks.
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