By The Canadian Press

TORONTO - Stock markets battered by economic turmoil are "nearing a bottom" and the rest of the year should be meltdown-free, says CIBC World Markets chief economist Jeff Rubin.

But even though there may not be any more sharp nosedives on markets, the scene is not set for a sustained equity rally, Rubin says.

Rubin says the interest rate at which banks lend money to each other has been dropping from end-of-summer highs as central banks aggressively cut interest rates and billions of dollars in cash and guarantees are infused into economies.

That - and a new Chinese fiscal stimulus package - have eased credit and liquidity fears somewhat, creating a little more stability for companies and investors alike.

But Rubin says with credit fears abating, more focus will be put on another concern for the resource-heavy Toronto market, the troubled global economy.

He says recent economic data show that the United States has entered a recession alongside Europe and Japan, and notes that on average, it has taken the TSX about three years to fully recover from a bear market.