Eoin Treacy's view Following one of the most impressive starts to the year in quite some time the majority of stock markets have been in a corrective phase for at least the last six weeks. Investor anxiety has increased substantially amid fears of a disorderly conclusion to the Eurozone's melodrama. China's slowing economy and uncertainty surrounding the USA's economic outlook are exacerbating concerns.

However, following what has already been a considerable decline in many stock markets one needs to ask whether one's time is better spent contemplating increasingly more apocalyptic scenarios or by beginning to assess markets for recovery potential once evidence of bottoming is evident.

As an exercise, I performed a search on Bloomberg for global shares with a market cap of greater than $1 billion, a 12-month net dividend yield in excess of their estimated P/E ratio and whose Price/Book is less than 1. There are 34 results. Here are some of the more interesting.

Vivendi (7.12%) hit a medium-term low in April near €12 and has held a progression of incrementally higher reaction lows since. A sustained move below €12.50 would be required to question potential for continued higher to lateral ranging.

France Telecom remains in a consistent downtrend and gapped lower today to post a new 10-year low. It yields more than 14% but a sustained move above €10.80 would be required to break the progression of lower rally highs and suggest a return to medium-term demand dominance.

Telecom Italia (5.88%) is also noteworthy. It completed an upside weekly key reversal today and a sustained move below 65¢ would be required to question potential for additional upside.

Austrian listed OMV (5%) has returned to test last year's lows near €21 and appears to have found at least near-term support. A sustained move to new lows would be required to check potential for a further bounce.