QE triggered emerging market debt boom: CLSA

Here are experts’ equity calls for the day on how the market is expected to trade:

Russell Napier of CLSA: We believe investors continue to place far too much faith in central bankers' ability to manipulate macro variables and underpin asset values. QE triggered the emerging-market debt boom, but it cannot stop their devaluation or deflation. Rising treasury yields, falling inflation, contracting bank credit and very high equity valuations are a dangerous combination.

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John O' Connell of Macquarie: We continue to favour equities over commodities. We think commodity prices will be less responsive to global growth than was the 2000s due to expected increase in supply, and slowing demand growth from China. Equities are one of the best leading indicators, and their rise is a positive growth signal. A focus on what the Fed might do and when misses the point that the rise in bond yields is also ultimately driven by a better growth outlook.