Gloomy outlook by fund bosses

FUND managers are less optimistic about the global outlook for corporate earnings and the strength of the recent stock market rebound, according to a monthly survey by Merrill Lynch & Co.

“Volatility of corporate earnings is going to increase,” said Merrill chief investment strategist David Bowers at a press briefing. “Equities are still seen as undervalued, but not as much as last month.”

World stock markets climbed during the past month, with the Dow Jones Industrial Average rising 6.3%, the German Dax Index surging 18%, and Britain’s FTSE 100 Index gaining 8.4%.