With the 12th anniversary of the great market crash of 1987 due on Tuesday it was always likely that there would be comparisons made between then and now. And events yesterday pointed ominously to the possibility of a hefty setback in markets. But there was no great storm as happened in 1987, although the pessimists were quick to point to a hurricane heading towards the US.

Already burdened by the threat of interest rate rises in the US, Britain and the euro zone, markets were hit with another upper cut from Alan Greenspan, chairman of the US Federal Reserve. In a speech made after Wall Street had closed on Thursday, Mr Greenspan appeared to warn again about overvaluation of equities as he told banks to set aside money as insurance against a market sell-off.

Meanwhile, a rise in UK interest rates is increasingly likely, especially after recent data showing a higher than expected increases in average earnings and a sharp rise in house prices.