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Tug of war between liquidity and economic realities likely to continue, says JPMorgan

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By Latha Venkatesh   | Surabhi Upadhyay  Apr 30, 2020 2:49:30 PM IST (Published)

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James Sullivan, MD-Asia equity research at JPMorgan, shared his views and outlook on global economy and markets with CNBC-TV18. He also discussed macroeconomic contracting both in the US and in emerging markets

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Here are the highlights from his interview:
  • What we are seeing now is a battle between liquidity and economic realities.
  • Japan & Germany have 20% of GDP in their fiscal stimulus.
  • GDP & PMI numbers are now the worst on record.
  • Expect the tug of war between liquidity and economic realities to continue.
  • Better to stick to consumer staples and tech stocks currently.
  • Expect PMI & GDP in China to improve significantly in H2.
  • Ability of Indian govt to provide stimulus has been limited.
  • Impetus from govt spending will be weaker in India compared to other markets.
  • See some headwinds for financials sector for the next 6-12 months.
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