Paris: Global stock markets may have rallied too far too fast over the last five months as they bounce back from a panic plunge provoked by the collapse of Lehman Brothers Holdings Inc. a year ago, analysts warn.

Leading markets climbed back from the depths in March and April, and then in July and August rallied strongly again, recovering much of the ground lost over 12 months. But in the last few days they have faltered because of doubts about the underlying dynamics of signs that leading economies are pulling out of recession.

On Wall Street, losses since Lehman Brothers collapsed have been reduced to 18%, in London to 10%, Tokyo 16% and Paris 15%. Shanghai’s main stock index has jumped by 37%.

The head of share portfolio management at Groupama Asset Management in Paris, Romain Boscher, commented: “The good news is that things are on the move again.

“The bad side is that this is not on a solid basis. The economy is emerging from its torpor, but this is still very financial without extension to the labour market or industry.”