Even as global resource stocks have had a stellar run-up in the recent weeks, driven by signs of stabilization in China`s economy, cheap valuations and short covering, questions are building over the sustainability of this trend.
China`s official Purchasing Managers` Index (PMI) for April dipped to 50.6 from a March figure of 50.9, according to data from the National Bureau of Statistics, missing a Reuters forecast of 51.0.
After last week's big rally, the global markets have been subdued this week. In an interview to CNBC-TV18, Jason Hughes, IG Markets says, Europe still remains a big concern to most investors globally.
As borrowing costs get closer to the danger area that forced Ireland, Greece and Portugal to seek a bailout, investors are concerned that Spain is next in line to dial for help. Justin Harper of IG Markets finds that the Spanish government is downplaying its country's debt issues.
Although, Ben Bernanke, the Fed Chairman has hinted at no immediate quantitative easing, Jason Hughes of IG Markets feels the coming months are likely to see some form of QE3 from the Fed.
In an interview to CNBC-TV18, Justin Harper, head of research, IG Markets gives his outlook on the current global environment, post the EU summit. He also discusses other risky asset classes like crude.
In an interview to CNBC-TV18, Justin Harper of IG Markets says talks on quantitative easing have become louder with global markets banking on a flood of liquidity hitting the system soon.
In an interview with CNBC-TV18, Jason Hughes of IG Markets, spoke about his reading of the European markets and the road ahead.
Justin Harper, head of research of IG Markets tells CNBC-TV18 that the sharp corrections witnessed in global markets has investors entering the field again to pick up some solid companies which are available at a discounted price.
Jason Hughes of IG Markets tells CNBC-TV18 that commodity based currencies and Asian risk currencies are really feeling slightly more than a pinch today.
Risk aversion is heightening at this point in time and can be seen across the global screen. Greece exiting the euro zone is the talk of the town right now and is almost a given, something that markets seem to have priced in.
Justin Harper of IG Markets believes investors are withholding from buying risk assets currently because of the choppy behaviour of equities.
Justin Harper of IG Markets tells CNBC-TV18 that the outlook for equities is bleak for this week and the next few weeks ahead.
Jason Hughes of IG Markets says, after the rally in the beginning of 2012, investors are getting a little bit nervous now.
Justin Harper of IG Markets feels that emerging markets like India will continue to struggle.
Jason Hughes of IG Markets tells CNBC-TV18 that Indian equities look attractive around the 5200 level on the Nifty.
Justin Harper of IG Markets believes that the global rally still has a few laps left to it, but that the rising price of crude is a troublesome factor.