Globally, share prices are down by more than 6pc, while some markets, notably those of China, Greece, Portugal and Spain, have lost much more. It's not hard to see why. Renewed uncertainty about the future direction of monetary, fiscal and regulatory policy has once again undermined confidence, reviving risk aversion and volatility. This was always bound to happen once the extraordinary monetary, fiscal and financial system support that helped underpin the stock market rally of last year started to unwind, but with the economic recovery still far from secure, that moment has come rather sooner than markets anticipated or policymakers would have wished.   Related Articles FTSE 100 suffers worst week in six years We can't see the economic green shoots, but that doesn't mean there aren't any Stock markets are rising even as the economy bombs - what's going on? FTSE 100's roller coaster ride isn't over yet World markets fall sharply as dollar strengthens In many emerging markets, the authorities are already in overt, tightening mode.[Read more...]