Mark Matthews expects a mild recession on back of a strong labour market

Mark Matthews of Bank Julius Baer & Co said on Thursday that he expects a mild recession, adding that a 20 percent decline in S&P is what the market usually sees in a mild recession.

“Even if we get a recession, it will be a mild one because the labour market is still so strong, there are still 1.7 jobs available for every one unemployed person looking for work. And so 20 percent decline in the S&P is really about what you usually see when you have mild recessions.”

Speaking to CNBC-TV18, he said rising China bond yields will be a signal for good times. However, the dollar index will see a slide in the coming months.