What goes down...

After having fallen by approximately 12% in the 2 week aftermath of the events of September 11th, the Morgan Stanley World Index, the benchmark measure of the world's major stock-markets, has staged a dramatic recovery to early November, regaining all of September's falls, to currently sit above its pre-attack levels. Gains in Technology and Telecommunications stocks, 2000's biggest losers, have led the recovery.

Bond markets have also continued to benefit from the concerted efforts of Central Bank's around the world in reducing interest rates, most bonds sitting at, or very near to, all time high prices as borrowing costs, and future inflation forecasts, approach near-record lows.

Economic data emerging in the United States and Europe continues to paint a gloomy picture for the remainder of 2001, with consumer demand, already weakened by economic slowdown in 2000, being further dampened by the terrorist action. Stock markets however, appear to be discounting further negative news for this year, and are anticipating the potential for recovery in mid to late 2002 as a result of the Central Bank's accommodative interest rate policy.