CLSA asks investors to remain fundamentally cautious

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

Chris Wood, CLSA: We would advise investors to remain fundamentally cautious. Any decent equity rally is going to be correlated with a sell-off in the bond market. The stock market badly needs Ben Bernanke to deliver a positive surprise at Jackson Hole in the sense of outlining a more concrete plan for the anticipated third episode of quantitative easing.

Ethan Harris, BofA ML: Financial markets are looking for a big policy response from the Fed Chairman in his speech at Jackson Hole today. We think there is a high risk that markets will be disappointed. Moreover, the Fed may even have to defend its current stance.