In an interview to CNBC-TV18, Peter Hooper, managing director and chief economist, Deutsche Bank and Seth Freeman of EM Capital Management spoke about the US Congress passing a last-minute deal Wednesday night to avert a damaging debt default and to reopen the government after a more than two-week shutdown.
Also Read: House passes budget deal; Obama to sign 'immediately'While Hooper feels the politics in Washington do not look very good, Freeman says he would be surprised if there are significant gains from here. "I think the basic presumption today was that at the very eleventh hour both houses would pass some kind of a bill. So, obviously, more certainty is better for investors that I would be surprised frankly if we see another 1.5-2 percent tomorrow," Freeman says.
On emerging market, Freeman says: "The experience we have had over the last couple of weeks here in the US has shown some investors that perhaps emerging markets don't have the same kind of political risks to have everyone's look at them as having. I just got back from Brazil today and there were a lot of questions down there about the American prestige and really how badly this affects the credibility of the US into the extent that emerging market countries can keep their house in order. It will bode well for the end of the year. I mentioned before many funds are still underinvested in emerging markets and as we get closer to the end of the year, we always have some window dressing. So it could be quite good for the next couple of months."
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