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Oliver's Insights - The global economy looking a little less scary

27 January 2012 - The key points are: The last month or so has actually seen better news regarding the global economy - European Central Bank action appears to have reduced the risk of a banking crisis in Europe, US economic data has continued to surprise on the upside and Chinese economic data remains consistent with a soft landing. 

 


> Downwards revisions to World Bank and International Monetary Fund forecasts and associated risks are just catching up to the market concerns of three or four months ago.


> While shares are at risk of a short-term correction and Europe remains a source of volatility, the improved global economic backdrop is a positive sign for shares and related growth trades going forward.