Sunil Garg, Managing Director, Global Head of Research & Investments at Lighthouse Canton shares his expert views on Global Central Banks Pivots, Fed Rate Cuts, Equities Markets and Treasury Yields on Bloomberg Markets Asia with Paul Allen and Avril Hong.
Global central banks are pivoting, shifting towards easing. In this conversation with Bloomberg Markets Asia, Sunil shares his view on Japan's recent leadership change and its short term effect on markets, and that the BOJ's move to raise rates was due more so to inflation rather than political pressure. New Zealand's rate cut signals a broader trend in developed markets. The Fed is expected to cut rates by 50 basis points in September, with market expectations diverging from Fed communications. Despite anticipated rate cuts, economic outlook remains cautious. Weakening U.S. labor and consumption data, along with softening demand in company reports, contribute to a bearish equity outlook.
The two-year Treasury yield is predicted to reach 3% ahead of the Fed funds rate, reflecting expectations of continued monetary easing.
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