Last week it was Brazil, this week India and next week, or the week after, China. Interest rates are continuing to rise in the developing world. The Reserve Bank of India meets tomorrow and a quarter point increase is expected.

Equity markets start the week with the US earnings season moving into full swing. Results are due for some 127 companies. By the end of the week over 40 percent of the S&P 500 will have reported. As always, the tide of market sentiment will ebb and flow with the profile attached to the companies reporting on the day but thus far the results have been good. Some 70 per cent have been better than expected.

David Fuller's view So far, these hikes represent a partial normalisation of rates. Central banks in the growth economies would like to rein in inflation, but not at the cost of sharply higher moves in their currencies from present levels.