A no vote in Greece referendum on Sunday will be negative for emerging market currencies, says Benoit Anne of Societe Generale. At the moment the market is pricing in a 50-50 probability, but a no vote will not go down well with the markets, he adds.
Benoit Anne of Societe Generale is negative on the rupee in the short-term, but is bullish otherwise. He says the rupee move will not be dramatic as Reserve Bank is on the watch.
China stocks suffered their biggest one-day percentage drop in more than six and a half years, dragged down by record tumbles in financial stocks as authorities battled excessive market speculation.
In an interview to CNBC-TV18, Benoit Anne, managing director, Head of EM Strategy, Societe Generale says the market is trading in extremely tough global backdrop.
The US Federal Reserve began its two-day policy meeting on Tuesday.
Benoit Anne of Societe Generale does not expect Federal Reserve to hike interest rates early even if payroll data is strong
Benoit Anne of Societe Generale believes central Europe might benefit the most from an ECB stimulus boost.
Though one is seeing some positive developments in India‘s macro-economic scenario, but the key trigger would be general elections scheduled in May, Benoit Anne, managing director, head of EM strategy, Societe Generale said.
A net 10 percent of global fund managers are underweight emerging markets, well below long-term averages, according to a December survey by the Bank of America-Merrill Lynch.
Benoit Anne, Managing Director, head of EM strategy, Societe Generale expects risky assets to rally post the Fed taper in January.
Benoit Anne, MD and Head-Emerging Market Strategy, Societe General expects 10 year US Treasury bond yield to rise to 3.25 percent by year end.
Post the enthusiastic opening of European Benoit Anne of Societe Generale advice investors to still stay cautious. He further explains that it is a big week for the global markets.
Societe Generale is calling for strong number on non-farm payroll coming out from the US on Friday. He is bearish on currencies across the board and expects the weakness to continue.
Benoit Anne of Societe Generale (SocGen) explains, on CNBC-TV18, that he favours high-beta Asian currencies in an attempt to cash-in on the rebound in economic growth and healthy risk appetite. Overall, Anne is also bullish on emerging markets for the beginning of 2013.
In a bid to end their financial crisis, Greece will buy back bonds through a Dutch auction. The move is seen as an effort to cut Greece‘s debt and will allow it to assess the level of demand before setting a final price for the deal.
With the US fiscal cliff looming large, Benoit Anne of Societe Generale feels global markets at the moment are going through a wait and watch period. According to him, the time is still not ripe to go for buying opportunities, at least till December.
The global markets have been subdued over the last couple of sessions. In an interview to CNBC-TV18, Benoit Anne of Societe Generale says this week is critical for global markets. "We will have to watch the outcome of both the US and Greece elections," he adds.
Benoit Anne, MD, head-EM strategy, Societe Generale explains to CNBC-TV18 that expects Spain to request for aid at the next EU summit scheduled to be held in mid-November. Benoit Anne adds that the EMEA (Europe, Middle East and Africa) markets top his list markets to invest in.
Benoit Anne of Societe Generale does not expect anything major coming out of the central bank. According to her, the ECB has already delivered strong signals and it is time to watch out for Spain‘s next move.
Benoit Anne, MD, head-EM strategy, Societe Generale, explains to CNBC-TV18 that if the Federal Open Market Committee (FOMC) meet on Thursday does not announce anything positive, then there is a high probability of the risk rally extending over the next few weeks.
According to Benoit Anne of Societe Generale, the first week of September will be the real market test. It would be back to reality. It will be the acid test for global markets. “The first week of September will be quite decisive,†he adds.
Benoit Anne, Societe Generale is very nervous about risky assets. "At this point, the bad news can come from several directions. So, you have got to keep watching your screens and be prepared for the worst. Greece is back to the picture. The problem with Greece is the financial programme," he adds.
Global growth expectations are not going in the right direction, says Benoit Anne, head of EM strategy, Societe Generale. "Equities are going to be a tough market to look at right now because we are very busy downgrading growth expectations." He would continue to be tactically bearish on the Indian rupee.
In an interview to CNBC-TV18, Benoit Anne, MD, head of emerging market strategy at Societe Generale talks about his expectation for global markets ahead of the BoE and the ECB monetary policy decisions.