Falling energy prices, lower interest rates and a soft landing in the US economy should remove much of the uncertainty in world markets by year-end, according to Dolmen Butler Briscoe Stockbrokers managing director Mr Ronan Reid. Addressing the Leinster Society of Chartered Accountants yesterday, Mr Reid suggested that stock markets would recover later this year.

"We have seen the over-valuation now removed from global markets and there are many signs that we are in the last stages of the market correction."

Mr Reid is optimistic that earnings from US companies will not be as weak as expected during 2001 and stocks will recover.

"In nine out of 10 years when interest rates fall, equity markets perform, so despite the current market uncertainty we see a recovery in equity markets during the course of this year."