Credit Suisse: Capital appreciations of developing counties' assets possible in 2019
Baku, Azerbaijan, Jan. 12
By Taleh Mursagulov - Trend:
Capital appreciations of developing counties' assets, like currencies, stocks and bonds, are possible in 2019, Credit Suisse Chief Investment Officer for Middle East and Africa, Michael O'Sullivan told Trend.
Speaking about the possible places to invest this year, O'Sullivan said that according to Credit Suisse above mentioned assets are the preferred investment categories.
“Overall, we believe that stock markets and commodities will show growth in 2019, after low numbers in late 2018. Now we have more clarity on betting projections [USD]. Growth won't be as bad as expected and profitability must be healthy in Europe and in the US”, he said.
In 2018, the US Federal Reserve raised its benchmark interest rate to 2.5 percent. According to the forecast of the Federal Reserve System, in 2019, two increments by 0.25 percent are expected on each step.
At the end of last year, the US stock market showed a significant decline amid investor distrust to Trump administration's statements about a temporary "ceasefire" in a trade war with China.
Investors apprehend that disagreements between the two locomotives of the global economy may slow down the development of the global economy. However, as previously reported by Bloomberg, by referring to White House, to revive financial markets, Trump is seeking to conclude a trade deal with China soon.
The collapse of the US stock market led to investors began to think more seriously about investing in developing country assets, whose economy is showing a good growth. Particularly, interest is the stock market of developing countries.
According to World Bank forecasts, the economies of developing countries in 2019 will grow by 4.2 percent.