Making sense of major price moves on international stock markets is never an easy business, although analysts are never short of reasons to "explain" the ups and downs of shares.

Friday's sharp fall on Wall Street was attributed to "profit-taking" after the market hit record highs and to fears of rising interest rates in the US and Germany. However, by yesterday afternoon the markets had regained their poise - for the moment at least - and the late rise on Wall Street will help steady nerves in Europe this morning. Rising interest rates on either side of the Atlantic may act as a trigger to further sell-offs. But the fundamental factor worrying investors is that markets have risen so sharply this year that many now fear that shares are too expensive.

Cautious statements on the profit outlook from some major US companies have heightened such concerns.

But the recent price declines should be kept in perspective. The London market, for example, rose 24 per cent this year to reach its recent peak and has since fallen back by just over 6 per cent, while New York remains some 20 per cent above its January level and Dublin is more than 30 per cent ahead.

One comfort so far is that there has been no major falls on international bond markets. But with speculation of higher interest rates likely to remain, the EMU launch date moving even closer and investors on edge, a nervous autumn for the markets appears in prospect.