Financial Markets Review by Lloyds TSB

World economic recovery is underway, led by the emerging markets. When the data for Q4 2009 are in, they will show that all of the G20 economies – which together account for over 90% of world gdp – are expanding.

World economic recovery is underway, led by the emerging markets. When the data for Q4 2009 are in, they will show that all of the G20 economies – which together account for over 90% of world gdp – are expanding. This recovery has three main key implications for financial markets in 2010. The first is that ultra loose monetary and fiscal policies put in place to kick-start recovery will start to be reversed. Second, this will likely lead to renewed volatility. Third, it is likely to change the dynamics of interest rate and FX markets in the months ahead.

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