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."
John Woods, head- fixed income, Citi Investment, says the FM needed to communicate fiscal prudence inorder to stabilise and infact accelerate flows in the coming quarters.
“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 Investment Management believes the Fed tapering will take effect from September unless there is a major shock on either direction — up or down.
John Woods of Citi Private Bank, sees limited downside for Asian emerging markets (EMs) and expects some sort of recovery from Q3 onwards. North Asian markets like Taiwan, Hong Kong, Singapore as a function of exports and uptick of growth in United States will see bottoming out first.
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, managing director and chief investment strategist, Citi Private Bank says the market has priced in an Obama victory at the moment.
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.
Markets are closely watching the Federal Open Market Committee (FOMC) meet on Wednesday and John Woods, MD & Chief Investment Strategist at Citi Pvt. Bank said markets are likely to be under pressure if the Fed does not take any concrete action.
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.
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.
The market reaction has not been overwhelming. The euro has ticked up to almost 1.33 to a dollar, where it was last week or so. In other words, a large part of the goods news has already been priced in, John Woods of Citi.
Europe is not out of woods yet as many EU nations are still combating high debt burden. Amid violent protests in Athens, Greece's parliament approved a very unpopular austerity bill to secure a second EU-IMF bailout and avoid national bankruptcy.
John Woods, managing director and chief investment strategist, Citi Pvt Bank says, Merkel-Sarkozy meet is unlikely to throw a positive surprise. “I think the market’s going to maintain a wait and see attitude. I expect downward pressure on currencies and equities,” he adds.
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.