Wall Street-correlated stock markets are facing the risk of correction, as Christopher Wood, the global head of equity strategy at Jefferies, conveys to investors in his latest edition of GREED and fear. Rising crude oil prices, which are nearing $100 a barrel (Brent), pose a threat to the global central bank’s battle against inflation and have led to a re-evaluation of its exposure to Indian stocks. “The potential for more US Federal Reserve (Fed) rate hikes, combined with the risk that monetary tightening finally bites as regards the economy, remains a risk for Wall Street-correlated world stock markets. “There is also the oil factor. This is why GREED and fear continues to believe the pain trade is down. “Areas in Asia, such as Indian midcaps, which have already done very well, are at obvious risk of some profit-taking,” writes Wood.
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