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Alternative Market Briefing

Is it a good time for global equities?

Tuesday, March 11, 2014

Benedicte Gravrand, Opalesque Geneva:

Investing in global equities is presently a roller coaster. Latest statistics from China, geopolitical events in Ukraine and uncertainty about US valuations and the dollar, all add to a generally perceived high level of risk. Hence some long-only managers are lowering their exposure to global equities while other fund managers are staying put, intent on seizing the opportunities they expect will arise.

MSCI's broadest index of Asia-Pacific shares lost 1.1% on Monday, and Tokyo's Nikkei stock average shed 1%, while US stock futures fell 0.3% from their record closing high on Friday.

"While non-farm payrolls surprised significantly to the upside on Friday, disappointing China data, escalating Russia/Ukraine concerns and the missing Malaysian aircraft have all contributed to a sombre mood," IG market strategist Stan Shamu wrote in a note to clients, according to The Economic Times.

The prices of copper and oil also sank on Monday, following news of China's lower exports levels in February (-18.1% from a year earlier) and it swinging the trade balance into deficit, according to Reuters. Meanwhile, hedge funds and money managers, seeing the geopolitical te......................

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