A less aggressive posture from the world’s central banks, and moves by Chinese authorities to support economic growth, will assure a rebound in equities from the US to China, according to veteran economist Allen Sinai.

The Standard & Poor’s (S&P)& 500 index rose for a fifth straight day yesterday while US Treasury prices tumbled after the American unemployment rate fell unexpectedly to a near four-year low.

FITCH Ratings affirmed the United States’ top-notch credit rating at AAA, giving the world’s largest economy a reprieve after it was downgraded by Standard & Poor’s little more than a week ago.

Creeping trade protectionism and bloated budget deficits pose a risk to the US’ long-term economic vitality, Federal Reserve Chairman Alan Greenspan warned today.