Global growth may slow but not stop

IT was a better week for global stock markets, as the heavy losses racked up over the second half of June gave way to a more positive dynamic last week.

Just as the prior sell-off had its origins in concerns about slower global economic growth (among other factors), some encouraging incoming news in recent sessions served to ease such anxiety. The result was that the sharply negative momentum which had built up late last month was partly reversed, with the US S&P 500 up about 5% over the week, for example.

There were several instalments of positive news, including a weekly report on US retailing which recorded a pick-up in sales activity in the run-up to the Independence Day holiday.