After a positive first half of the week, global equities are serving a reminder of just how difficult bear markets can be. Traders are quick to grab whatever short term profits they have made, making it difficult for rallies to build momentum. Banking shares have reversed a good chunk of the gains made over the last few days, but are still holding above the closing levels from last week. Today worry isn’t specifically related to complex financial deficits, fears are more in relation to general analysis that banks are not the place to be in during a recession. With house prices continuing to plunge on both sides of the Atlantic, rising unemployment and an increased risk of default on loans, the recession itself is enough put pressure on banks. This is before you take into account their dire capital adequacy positions.

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