All the Way in April-- Markets set to rebound:: Macquarie Research,

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All the Way in April
Markets set to rebound
Event
 Indicators are set for a positive April in world equities markets.
Impact
 Earnings revisions remain positive, particularly in the US. Although valuations
are not strong, earnings momentum and strengthening economic growth
should support equities markets.
 Liquidity is strong and investors are still building savings around the world.
Sovereigns, central banks and pension funds are searching for solid returns
and for financial assets. Equities do offer higher returns.
 Our global equities allocation model suggests the US remains a strong
contender for funds as do parts of Europe and Japan. Australia is not looking
attractive.
 Last but not least, the seasonal cycle and the presidential cycle in the US
favours April and equities. However, it is noticeable that the seasonality of
equity returns is stronger in Europe and Australia than it is in the US and
Hong Kong for instance.
Outlook
 Although investors have turned cautious in the past couple of weeks – world
growth will continue to recover and data flows should continue to reassure.
The markets resilience in the face of disaster in Japan and the downgrading
of Portugal also lends confidence to this view
 We continue to recommend developed markets in this more cautious
environment (VIX is still somewhat higher) and remain confident emerging
markets will return to favour later in the year. Markets offering solid returns
are Germany, Thailand, France and Indonesia , with the UK more moderate.
India, Hong Kong and Singapore are not favoured by the model.