In Focus: GDP growth vs stock market returns

The year-long stock market rally faltered over the summer, its progress derailed by concerns about the Federal Reserve's intentions to tighten monetary policy.

Worries about the end of quantitative easing (QE) were sparked by robust growth figures, showing the US economy grew by 1.7% over the second quarter. In the UK, second quarter GDP growth was recently revised up to 0.7%. The long-awaited recovery in Europe also appears to be underway. Latest eurozone GDP figures show the region finally emerging from recession after 18 months of contraction. Meanwhile, Chinese growth may be slowing (currently 7.5% – hardly a snail’s pace), but some emerging markets continue to grow at rates developed economies can only dream of. The reaction of marke...