The recent recovery in financial markets, during which equities in the US and Europe rose by more than 20% from their mid-November lows, came to a halt in the first weeks of 2009. Key driver was a dramatic weakening in the economic data flow. It signaled that the global economy has fallen into a deep and globally synchronized recession. Not only did GDP in the US, the epicenter of the credit crisis,contract strongly, it also fell in regions like Japan or Europe. Even in China, for which the possibility of a decoupling was debated intensely just a few months ago, indicators took a decisive turn for the worse.
Click to view >>
