Global stocks were mixed Wednesday as investors wait for more clarity on Greece's new austerity measures and ahead of U.S. jobs data. Experts told CNBC a W-shaped recovery is on the cards as inflation will become a problem later on.
W-Shape Recovery on the Cards
Expect a W-shaped recovery, says Robert Ward, director of Global Forecasting at the Economist Intelligence Unit.
Do Stocks Have Legs Long-Term?
Stocks do mirror the underlying economy and the U.S. economy is being supported by government stimulus, not economic growth, says Len Blum, managing director at Westwood Capital. He also discusses some of the key events affecting markets this week.
Inflation Will Be An Issue
Inflation will be an issue down the track and real assets, be it property or commodities, will benefit in the medium to long term, says Andrew Kaleel, director at H3 Global Advisors. He believes oil will be rangebound but he is upbeat on gold, silver and nickel.
Market to Consolidate
Expect the market to consolidate with an upward bias, driven by earnings growth, says Ian Harding, principal of Wavestone Capital.
Upbeat on Asia
Hong Kong and Singapore are the preferred markets for Andrew Pease, investment strategist at Russell Investment Group. He tells CNBC that Asia is an attractive place to invest in right now.
Bearish on Emerging Markets
Emerging markets have lost momentum coming into 2010, despite good earning numbers, says Mark Konyn, CEO of RCM Asia Pacific.
Strong EM Demand to Support Oil
Ajay Kapur, global strategist at Mirae Asset Securities sees crude making a committed move above $80 as he expects emerging market demand to be very strong due to economic recovery.
Bullish on Resources, Banking Stocks
Australian assets will do very well, with the economy leading the global recovery, says Chris Kimber, senior advisor at Bell Potter and Kumar Palghat, CEO of Kapstream. Kimber tells CNBC that in such an environment, he remains bullish on resources and banking stocks.
Eye on Miners
Greg Fraser, senior industrials analyst at Fat Prophets is positive about global miners BHP and Rio Tinto for the longer-term and says that BHP is unlikely to attempt another bid for its smaller rival.
Tracking Returns in China
Invest in China's railway projects, suggests Martin Hennecke, associate director at Tyche. He explains his investment rationale.
Buy Toyota Shares?
Andre Phillips, analyst at KBC Securities Japan sees long term opportunities in Japanese auto stocks, in particular Toyota, which is at a historic low.
Euro Could Weaken Slightly Going Forward
The euro could weaken slightly going forward, foresees Magnus Prim, chief strategist, Asia at SEB. He tells CNBC he has a one-month target of $1.35 for the euro-dollar.
Trade Aussie vs. Kiwi, Euro
Trade the Aussie against the NZ dollar, euro or pound if you are long Aussie, says Ed Ponsi, president of Fxeducator.com. He adds that the Aussie-dollar pair is unlikely to react as much to good GDP numbers in Australia today.