2018 could be a tougher year for global equity markets: Geoff Lewis

Federal Reserve Chairman Jerome Powell has downplayed the concerns over recent market volatility. In his first appearance before the US Congress, Powell has indicated that the fed plans to hike rates three times this year and may be inclined to a fourth.

In an interview with CNBC-TV18, Geoff Lewis, Global Strategist - Capital Markets Group at Manulife AMC shared his views and thoughts on the same.

I think there is a continuity with the kind of policies pursued by Janet Yellen and that is what we have been expecting ever since Powell was nominated for the Fed chair back in November. So I think the majority of his testimony was consistent with that view. I think the market is now well placed for three interest rates hikes, he said.

I think Powell on the whole did quite well in terms of his performance and markets may have over-interpreted it, he added.

I think it is a big year for the global economy and possibly a tougher year for markets, said Lewis.

There will be some inflation scares, there will be some worries over the pace of the monetary accommodation removal but we still believe that you are looking at decent earnings growth and an improved economy, he further mentioned.

For full interview, watch accompanying video…