EM overweight allocation may lead to further fall: BofA ML

Here are experts equity calls for the day on how the markets are expected to trade:

Michael Hartnett, BofA ML: Our October Fund Manager Survey confirmed bearish sentiment and broad risk aversion. Cash levels remained elevated at 5% and investors further trimmed their equity and commodity allocations this month. However the EM Overweight allocation could lead to further selling pressure if macro and growth risks increase. Chris Wood, CLSA: The pending policy package is likely to consist of a restructuring of Greek debt combined with some attempt to ring-fence other sovereign credits, as well as to recapitalise the banks. However, our view remains that more risk aversion is coming sooner rather than later. We feel Berlin may demand further evidence of austerity in return for more bailouts.