Asian markets tumbled on Friday, extending the sharp selloff in US and European equities overnight as intensifying concerns over the health of the euro zone economy hit risk appetite.
Jonathan Barratt, Barrattsbulletin.Com, is not surprised at the Fed‘s decision. He cautions of higher commodity prices and pressure on USD.
Nicholas Ferres, investment director, Eastspring Investments expects the Indian equity market to see a relief rally in the short-term as the market is not cheap in the global context.
Nicholas Ferres of Eastspring Investments says, in an interview to CNBC-TV18, that the fears regarding the taper in the QE programme have already been priced in by emerging markets. Ferres adds that despite slightly higher valuations, he finds the Indian market lucrative enough to attract investment.
The downward spiral in the Indian rupee poses a significant threat to the country's equity market, according to one strategist, who warns that continued weakness in the currency could prompt foreign investors to flee domestic stocks.
Nicholas Ferres of Eastspring Investments says the way the currencies has responded to Fed‘s talk of tapering suggest that people still want to own dollars in preference to their local currency and that is quite bearish.
EMs, which have been highly expensive, may see more pain on the back of rising US bond yields, says Nicholas Ferres of Eastspring Investments.
The trend in the US Labour market suggests the Fed is probably on track for a September tapering of its quantitative easing programme, says Nicholas Ferres of Eastspring.
Nicholas Ferres of Eastspring Investments says the dollar will continue to strengthen and investors should buy the greenback now.
US stocks rose on Tuesday, with the Dow and the S&P 500 closing at new all-time highs as Federal Reserve officials' comments eased some concerns that the central bank could start reducing its stimulus programme.
Nicholas Ferres, investment director, Eastspring Investments, says that valuation difference between the US markets and the emerging markets now looks attractive.
Nicholas Ferres of Eastspring Investments expects Italy to go back for another election and also sees further fiscal tightening in US.
In an interview to CNBC-TV18, Nicholas Ferres, Eastspring Investments says they are still relatively cautious on markets in the near-term after the recent run-up and maintain a relatively neutral equity position.
Nicholas Ferres of Eastspring Investments said they are cautiously positioned at the moment. Going into the year end, Ferres is modest underweight on equity and underweight on US equities.
Nicholas Ferres of Eastspring Investments says he is watching 1,420 level on the S&P 500 closely. "As a key support level, that was the high in early April which was a previous resistance," he told CNBC-TV18 adding, a break of that to the downside could precipitate a more meaningful correction.
With a modest underweight stance on equities, Nicholas Ferres of Eastspring Investments remains cautious on the global markets in the short-term. However, he would not be surprised if it runs a little bit higher.
In an interview to CNBC-TV18, Nicholas Ferres of Eastspring Investments finds it difficult to predict how global markets will react to the Spanish aid agreed to over the weekend.
The global markets have been jittery over the last few days. In an interview to CNBC-TV18, Nicholas Ferres, investment director and member of the global asset allocation of Prudential Asset Management says, it’s plausible that the markets get a 10% correction.
The global markets have had a great run since the beginning of 2012. Nicholas Ferres, investment director and member of the global asset allocation, Prudential Asset Management says, he wouldn't be surprised to see a modest correction in the near-term.
Nicholas Ferres, investment director at Prudential AMC, tells CNBC-TV18 that markets across the world are likely to remain unstable in October. Ferres is underweight on India as he feels that the valuation is high.