Global economy not in danger despite volatility of markets

THE ongoing de-rating of equities relative to other asset classes continued with a vengeance this week with nervous investors knocking 5% and 6% off the value of S&P's 500 and the Nasdaq respectively in the past five days.

The ISEQ failed to escape the wrath of investors, declining by over 6% at the lows this week. The heavy weighting of financials in the Irish index meant that accounting-related fears emanating from large investment banks such as JP Morgan Chase had a particularly negative impact.

Global markets also exhibited a level of intra-day volatility not seen since the 1987 crash.