Market Tips: Market Bravado Won't Last
Global stocks rose Thursday following the overnight rally in the U.S. which was spurred by the Federal Reserve's decision to buy up $300 billion in long-term Treasurys as part of its effort to stimulate the economy.
But experts interviewed on CNBC don't think investors' bravery of piling back into risky investments like stocks will last.
Risk Aversion May Return in a Week
Risk aversion may be back in favor in as little as a week, says Timothy Connors, corporate FX manager at Custom House. He tells CNBC what will trigger further risk aversion, as well as its impact on the major currencies.
Is the Market Rally Going to Last?
It is still too early to tell if the stock market rally will last for the long-term, John Haynes from Rensburg Sheppards told CNBC. "Keep an eye on financial services stocks. If they demonstrate better trends and more resilient plans over a quarter or six months, then we can feel more confident about a comeback," he said.
Gold to Pull Back as Stocks Rally
Gold will likely pull back to the $850 level as the wider markets rally, says Colin Whitehead, analyst at Fat Prophets.
Value in Gold Miners Seen
Gold miners are a better value than the metal itself, says Mark Hansen, director of trading at CPM Group.
More Bad News to Come
There is more bad news to come, warns James Shugg, senior economist at Westpac Bank. He shares his thoughts on the Fed's move to buy long-term debt.
Expect Yen to Weaken Further
The BoJ's move to increase its buying of government bonds by a third is an additional factor acting against the yen. Ashley Davies, FX strategist at UBS tells CNBC what else will cause the yen to stay weak in trade-weighted terms.
Euro Gains Hard to Sustain
Lee Wai Tuck, currency markets strategist at Forecast, says the Fed's aggressive 'credit-easing' move came as a surprise, market players are concerned that volatility will increase and make it harder to gauge the dollar's trend.
Positive on South Korea
Pearlyn Wong, investment analyst at Bank Julius Baer is positive on the South Korean equity market and the won as she thinks they are both undervalued.