Bloomberg Daybreak: Asia Edition Emerging Market Outlook; Traders Gear Up for US CPI
13 snips
Feb 12, 2025 Ben Luk, Senior Multi-Asset Strategist at State Street Global Markets, shares his insights on the evolving landscape of emerging markets, highlighting cautious institutional interest in Chinese assets despite local uncertainties. Adam Turnquist, Chief Technical Strategist at LPL Financial, discusses the implications of Federal Reserve policies on market trends and inflation, particularly ahead of the key U.S. CPI report. The conversation dives into strategic investment approaches in a rising yield environment, emphasizing specific sectors that may thrive despite economic challenges.
AI Snips
Chapters
Transcript
Episode notes
EM Investment Landscape
- Emerging markets (EM) are becoming more attractive due to appealing valuations.
- Low positioning from institutional investors also adds to their appeal.
Chinese Asset Positioning
- Chinese assets are generally under-owned, but there's uncertainty around U.S. tariffs and Chinese stimulus.
- Investors are cautiously increasing exposure, seeking more clarity on Chinese policies.
AI Trade in China
- The AI trade in China is gaining interest, but flows haven't been spectacular.
- Foreign investors await firmer policy support or deregulation before substantially increasing investment.