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Summers' Withdrawal Seen Boosting Risky Emerging Market Assets

17-Sep-13 13:26

Summers' Withdrawal Seen Boosting Risky Emerging Market Assets

Joe Quinlan, MD and Chief Market Strategist at US Trust-Bank of America Private Wealth Management in New York, discusses the following questions:

 

- In India, the crisis of confidence appears to have eased considerably, with the rupee staging a major turnaround, up around 9% against the U.S. dollar since the end of August. 
To what extent does this raise hopes that Asia's No.3 economy may be turning a corner?

- Goldman Sachs is saying that improving Chinese economic data does not mean its troubles are yet over, and that a rising U.S. dollar - to which the Hong Kong dollar is pegged - will mean tightened financial conditions, heavy asset prices and slow domestic demand in Hong Kong 
Is the Hong Kong shares market rally therefore short-lived?

- The Germans go to the polls this Sunday. 
But with Angela Merkel's coalition partners, the pro-business Free Democrats (FDP) party, failing to gain the 5 percent of votes in needs to re-enter parliament, what are your expectations for a continuation of her mandate?

- What do you make of news reports that former U.S. Treasury Secretary Larry Summers has withdrawn his name for consideration to succeed Ben Bernanke as Fed chairman? 
And what repercussions might this have for emerging markets, particularly their currencies?

- The US-Russia deal on Syria is a background focus this week, with the Syrians required to submit an inventory of weapons, and the UN Security Council expected to issue a resolution. 
Experts reckon this agreement will boost risk markets temporarily. 
Do you agree?


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