New York, 23 September 2010

With monetary policy expected to remain extremely easy and the global economic recovery intact, financial market conditions are favourable for investors, Barclays Capital today said in its latest flagship quarterly research publication, Global Outlook: Nothing More Than a Pause. As indicated by the title, Barclays Capital expects the recent mid-cycle slowdown to be followed by a pickup in growth.

"While we do not expect growth to reach the pace of the initial post-recession phase, easy monetary conditions are working across global financial markets, and it is simply a matter of time before that provides a lift to real activity," said Larry Kantor, Head of Research at Barclays Capital. "Emerging markets should continue to outperform developed markets, and we see the massive underperformance of equities relative to credit nearing an end."

Additional themes of Barclays Capital's Global Outlook include:

* Under-performance of developed markets relative to emerging markets is likely to weigh on developed market currencies

* In Asia, China slowdown concerns have abated, and growth in rest of region remains strong

* In the US, economic growth should be modestly above-trend for remainder of  year, though policy risks remain critical to market performance

* In Europe, improved economic data and sensible policy actions have reduced market risks

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