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Pros Say: Risk of Sovereign Defaults in Major Economies

Global stocks were lower Friday after Chevron's downbeat earnings outlook dragged oil prices and energy stocks down. Concerns about a global economic recovery have also dominated trade this week. Experts tell CNBC that the various stimulus packages have boosted the risk of defaults in developed economies.

Risk of Sovereign Crisis in Major Economies

Kelvin Lau, economist at Standard Chartered says huge government spending to drive growth is raising the sovereign default risk and the probability of a currency crisis in the developed world.

US Consumer Recovery Important

The growth outlook for emerging markets will have a problem down the road, without a recovery in the U.S. consumer, says Stefan Hofer, emerging markets strategist at Julius Baer.

Asia Will Stumble If US & Europe Falter

Michael Spencer, chief economist and head of global markets research at Deutsche Bank, says Asia will outgrow the rest of the world but if the U.S. and Europe's recovery falters, there will be another leg down to the recession.

US Economy Will Be Better in Q4

There's been a move back into risk overnight with investors buying into stocks and commodities, observes John Carey, Executive Vice President and Portfolio Manager at Pioneer Investments.

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