There was some selling at the beginning of the week as the outbreak of the human variant of swine flu sparked fear of a SARS-like pandemic and amid growing concern that governments on both sides of the Atlantic may force banks to raise more capital.

But shares have now rallied and fears the selling might be the start of a seasonal move known as 'sell in May and go away' seem unwarranted.

The FTSE 100 is up just over 20% since its lows in March 9th but is still down 3.5% compared to New Year's Eve 2008.

The Dow Jones Industrial Average meanwhile is up over 25% since March and down nearly 7% since the end of last year.

But the jury is still out on whether now is a good time to get into the market.

Credit Suisse strategist Andrew Garthwaite has upgraded UK equities to ‘overweight’ from ‘market weight’.

He believes monetary policy has been working and monetary conditions (exchange and interest rates) are now looser here than in other regions. He says this would suggest economic activity is on its way.

‘The UK now seems to have a workable bank insurance scheme and companies here are reporting above average earning while valuations look cheap,' he says.