Global stocks were predominately higher Tuesday, led by banks, while the pound took a beating because of new data confirming the weakness on the British economy. But some experts told CNBC that, paradoxically, quantitative easing might be what turns the pound’s fate around.
Sterling May Rise Due to Quantitative Easing
The British pound could strengthen in the next few weeks on the back of quantitative easing, foresees Hans Redeker, global head of FX at BNP Paribas.
Will Dollar-Yen Test 100?
Over the long term, the charts suggests that the dollar-yen cross may rebound to the 100-110 range, says Callum Henderson, head of FX strategy at Standard Chartered.
Yen Likely to Weaken Further
Licia Kok, treasury economist at United Overseas Bank Group sees more upside bias for the dollar-yen cross. She offers her take on how the cross might trade going ahead.
No Value in Investing in Banks
There isn't any value in investing in banks right now, thinks Stephen Gollop, CEO of Tyche. He tells CNBC there is too much risk of them disappearing or being taken over. He reveals where he is investing his money instead.
Banking on US
Australia's recovery is dependent upon a stabilization of U.S. financials, says Dominic Vaughan, senior dealer at CMC Markets.
Recovery for Financials Seen
There is significant upside for Australian financials from a 2-3 year standpoint, says Kevin Curran head of dealing at Foster Stockbroking.
Financials Still Not Ready to Be Bought
"This is still not yet the time to be bottom fishing in the most beaten up financials," David Sowerby from Loomis Sayles said. He discusses the state of financials during the current economic situation.
Positive on HSBC in the Longer Term
HSBC shareholders who do not wish to subscribe to the rights issue should sell their shares now, suggests Marco Mak, analyst at Tai Fook Securities. But he remains positive on HSBC in the longer term.
Cash Rich Balance Sheets Needed for Merger Deals
China is a likely buyer of commodity assets because they have the access to finance, says Thierry Apoteker, CEO, founder & chief economist at TAC Financial. He tells CNBC that only cash rich companies, in terms of balance sheets, can support multi-billion acquisitions.