IMULTINATIONALS OUT OF FAVOUR

nvestors are losing their appetite for US multinationals amid mounting worries that the weak dollar and growth in the rest of the world will fail to offset a slowing domestic economy.

The market's lack of enthusiasm for companies that had underpinned recent rallies highlights growing pessimism over the prospect that exports and global trade would help large US companies weather a slowdown in their home market.

With US-focused sectors such as financial services and consumer products reeling from the housing downturn and credit squeeze, the new concerns over multinationals are forcing analysts to further downgrade their earnings forecasts.