Global stocks were mostly lower on Monday as fears that China may tighten it monetary policy lingered. Experts told CNBC the country will appreciate its yuan, but when is still unknown. They explain how to play an expected appreciation.
China to Keep Policies in Place
With U.S. recovery still a long way off, it's not surprising that China would keep their current monetary policies in place, says Robert Howe, CEO at Geomatrix.
China Will Tighten, But When?
It's a matter of when, not if, regarding China's revaluing of the yuan, says David Carbon, MD, economics & currencies at DBS Bank Group Research.
Future of China's Monetary Policies
Look to the second quarter before you see any movement on monetary policies in China, says Vicks Poon, head of investment advisory at Fubon Bank, HK.
Any Yuan Appreciation Will Be 'Cosmetic'
While Chinese premier Wen Jiabao has rebuffed Washington's calls to revalue then yen, Eric Fishwick, head of economic research at CLSA, believes China will give in and appreciate the yuan eventually but the move will be more cosmetic than economic.
China May Allow Yuan to Rise by 6%
The yuan could appreciate by up to 6% in the second half, predicts Dorris Chen, executive director & head of regional financials research, BNP Paribas Equity. She makes her case to guest host.
China Keeps Us Up At Night
An undervalued yuan is helping China's economy and its exports, and Beijing will try to keep that source of growth, says Stephen Halmarick, head of investment markets research at Colonial First State Global Asset Management.
The risk of a double-dip recession in the U.S. could lead to higher fiscal spending, says James Dakin, vice pesident at Morgan Stanley Smith Barney. He adds that deflation is another concern for markets, while inflation will be a problem in 3-4 years' time.
Japan — An Irrelevant Part of Global Economy?
Japan is slowly becoming irrelevant as a part of the global economy, says Kirby Daley, senior strategist at the Newedge Group. He outlines the reasons behind his view.
Long on Malaysian Ringgit
Fixed income markets are overpricing risks of policy tightening, says Dominique Dwor-frecaut, macro strategist at the Royal Bank of Scotland. As for currencies, she favors going long on the Malaysian ringgit.
Bullish on Yen From April Onwards
Sean Callow, senior currency strategist at Westpac Bank, is bullish on yen crosses from April onwards.
Euro-Yen a Good Trade
Jim Vrondas, manager, corporate business at OzForex touts the euro-yen as a good trade. He discusses this and other foreign currencies.
Dollar May Slip, Euro to Rise
In light of a looming trade war between the U.S. & China, we may see a squaring up of U.S. positions, says John Noonan, senior forex strategist at Thomson Reuters. He also explains why the euro may rise in the short term and the yen could weaken.
Gold is an "Armageddon Hedge"
Gold is an "Armageddon hedge", says Kirby Daley, senior strategist at the Newedge Group. He tells CNBC why he recommends holding physical gold over ETFs.
The Calm Before the Storm
There is too much complacency seeping back into the markets, notes Kirby Daley, senior strategist at the Newedge Group.