“The setback for Healthcare Bill doesn't mean Tax Reform agenda is ‘Dead’. It puts more emphasis on tax reforms; overall global recovery is still there and corporate earnings may grow,” said Ken Peng, Asia Pacific Investment strategist at Citi Private Bank.
US economy strengthening in 2017 will have a negative impact on emerging markets (EMs), said Mixo Das of Nomura. However, in the near-term, EMs are likely to underperform the developed markets.
John Woods of Citi Private Bank believes EMs like India could see higher outflows. "Transmission mechanism through higher energy prices could be profound." Plus, US tapering, China slowdown, and liquidity concerns across central banks can result in outflows from markets like India.
John Woods, Citi Private Bank says tapering is likely to continue to impact EM currencies. "There is a sense that the US dollar is likely to strengthen as term yields rise and expectations for interest rates move forward. This will have an impact on the valuations of emerging market currencies, including India."
“The risk reward at the moment for holding Indian equities given potential upside and downside is skewed to the latter,†John Woods MD & Chief Investment Strategist, APAC, Citi Private Bank said.
John Woods says the beating experienced by the global markets on the back of weak China PMI data and US PMI data is not a fundamental worry overnight but a correction in the already overbought market.
John Woods of Citi Private Bank told CNBC-TV18 that the market will continue to witness selling activity for a while but it will not be considerable. But the downside would be limited, he added.
The markets are reasonably positive and that is reflected particularly by the developed market equity bourses that recently closed to their all-time highs, says John Woods of Citi Private Bank.
After falling for almost a week, the global markets started reacting positively on Monday due to the Cyprus bailout issue. John Woods, MD & chief investment strategist, APAC, Citi Private Bank expects the US market to continue rallying higher in near-term.
John Woods, MD and chief investment strategist- APAC, Citi Private Bank told CNBC-TV18 that US markets have started to lure EM funds and global bourses begun pricing in the end of QE.
John Woods of Citi Private Bank believes the correction in global markets is likely to continue due to the return of risks that were seen in 2012.
John Woods, MD & Chief Investment Strategist, Citi Private Bank said the risk appetite is delicately poised at the moment. Although, the markets appear to be slightly complacent at this point in time, there could be meaningful correction in the offing if the fiscal cliff is not resolved soon, he opined.
John Woods, MD and chief investment strategist, Citi Private Bank explains to CNBC-TV18 that the risk of an unforeseen event worsening the euro-zone crisis has not diminished. Woods advises investors to lock-in on profits from the India trade and remain underweight on China for the time-being.
The blows keep coming for hedge fund manager John Paulson, with Citi Private Bank deciding it will withdraw USD 410 million from his Paulson & Co hedge fund, according to people familiar with the decision.
John Woods of Citi Private Bank believes the Federal Reserve will pill the trigger on QE3 only if US macro economic data worsens.
In an interview to CNBC-TV18, John Woods, the MD & chief investment strategist, APAC, Citi Private Bank says that even though there are medium to long-term initiatives being taken by euro zone policymakers, near-term action is the need of the hour to contain the carnage in the region.
According to John Woods, managing director and chief investment strategist of Citi Private Bank, markets are going to remain skittish and will continue to sell-off, until there is a better sense of stability and certainty and some forward clarity over Greece.
Citi's CIO Richard Cookson believes the current market scenario is like 2011, which is when the euro zone disaster kicked off.
The European Central Bank's (ECB) today will conduct its second LTRO. In an interview to CNBC-TV18, John Woods, of Citi Private Bank says, too less is not going to provide the liquidity for the risk rally to continue. People are expecting around 500 billion euro.
It’s chilly as far as global headwinds are concerned, says the chief investment strategist at Citi Private Bank, John Woods.
Despite the EU summit being one of events looked forward to chart market course, John Woods, managing director and chief investment strategist at Citi Private Bank says that markets have already priced in the outcome.
Greek Prime Minister George Papandreou on Monday announced that he would hold a national referendum on the terms of Greece's bailout package giving a fresh blow to Europe’s financial-rescue plan.
According to John Woods of Citi Private Bank, whether or not the global markets could witness a multiyear bear patch depends on the severity of recession in the US. He said, "Markets are still coming to terms with recession in the US. We haven’t fully priced in a potential of recession."
In an interview on CNBC-TV18, John Woods, managing director & Chief Investment Strategist at Citi Private Bank expresses concern about the near-term direction of the monetary policy in India.
John Woods, managing director and chief investment strategist at Citi Private Bank too feels that QE3 is likely to benefit emerging markets more than developing markets like US.