European market expectations 'overextended'

A confluence of economic data releases and central bank policy announcements towards the end of 2015 buffeted investors and raised questions about the global growth outlook.

The global economy remains fragile but appears to be on a surer footing, particularly in Europe, where lead indicators would suggest a broad based recovery is under way. The balance of purchasing managers' manufacturing indices from around the globe continued to point to signs of stabilisation in November, rather than an increase in the rate of contraction. Economic activity in the eurozone has been steadily improving, with expansion evenly distributed across services and manufacturing sectors. All of the countries for which composite PMI data are available reported an acceleration in...