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Stock markets could suffer if the United States economy sidesteps a recession that many believe is just around the corner, according to Investec equities strategist Roger Lee. Lee said the market is bracing itself for a recession within the next year, a prediction he called the "most widely forecast recession in history." Paradoxically therefore, the greatest risk to U.S. markets is if the recession risk recedes. The implications of this could potentially lead to a downturn in both equities and bond markets, according to the strategist. "Paradoxically therefore, the greatest risk to U.S. markets is if the recession risk recedes," Lee added.
Persons: Roger Lee, Lee, Investec's Lee, , treasuries, it's, Jeff Cox Organizations: HSBC, CNBC, Dow Jones, Treasury Locations: United States, U.S, London, America
Britain and Norway hiked rates by 25 bps each, the Swiss National Bank jacked up rates by 50 bps. The European Central Bank hiked rates by 50 bps a week ago. ClearBridge strategist Jeffrey Schluze said, European banking regulation since the global financial crisis has been more stringent than in the United States, making the outlook for European lenders relatively strong. While banking stocks have been battered globally, the S&P 500 is up 0.5% this month (.SPX), while Europe's STOXX 600 index down 3.2% (.STOXX). CHANGE IN TONEBefore the banking turmoil, markets were driven by one-way moves as high inflation pressured U.S. and European markets.
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