The stock markets' rock 'n' roll is set to die

Equity markets have been "rocking and rolling" of late, with US stocks at a four-week high, and European stocks and the FTSE 100 at four-month highs. But don't count on the bounce lasting very long.

Equity markets have been "rocking and rolling" of late, says David Rosenberg of Gluskin Sheff. US stocks have hit a four-week high. European stocks are at their highest in four months, as is the FTSE 100 following three weekly rises in a row. Stocks jumped again early this week as the new international capital regulations for banks proved weaker than recently expected.

City analysts are now pencilling in a rise of around 10% for the FTSE 100, with UBS and Citigroup expecting the index to finish the year at 6,000. Better-than-expected recent data from America, which leads world markets, suggests "a double-dip recession is less likely", says Morgan Stanley's Ronan Carr. Kevin Gardner of Barclays Capital notes that earnings forecasts have been upgraded.

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