After a tumultuous week, STI is flat for the year

IT's not been a good week for equities as economic growth worries all over the world led to a 56-point or 1.7-per cent loss for the Straits Times Index (STI) at 3,167.73. In Friday's session, short-covering in anticipation that Wall Street would rise on Friday led to a 13.52-point rise for the STI, its final reading at almost exactly the level at which it started the year.

A slowing US, a weak eurozone - made all the weaker by a stagnant Germany - and a stalling China are the main ingredients in the bearish mix which has sent markets into a tailspin over the past couple of weeks. As of Thursday's close…