Asian stocks see muted start to third quarter


In a muted fashion invested, assessing mixed economic data, all amid concerns about the spread of the Corona virus. Onyx guests expecting markets to continue to be volatile in the second half of this year. 200 is Asia and Europe. CIA Deutsche Bank Wealth management. Do I thank you very much indeed. For joining us a brand new quarter after the best quarter we've seen in 11 years for many markets. Tell us about it. What do you expect? I think, after other strong ready we have seen now in the second quarter. I think quota would rather the from our perspective more sideways one but obviously with volatility. Because we think a lot already been privately owned, and we are seeing a higher number of infection coming up mostly coming from the US, So there's still some risk around, so we don't expect obviously. Similar quarter like second quarter more sideways. Absolutely. I mean, it seems the good news or possible. Good news has been priced in. But none of the bad has bean. At least it hasn't been for the last month or so. What is going to have to change in order for some of that euphoria to come out? I think the markets as you also write that pricing in off course now re opening ofthe economy, So I mentioned we are seeing continuous number off infection Rising. The U. S, has the highest seven day average since the outbreak. In March. So hence way think if it doesn't lead to a second lock down. Than the market should at least be quite robots. In this regard. We can imagine there might be some profit taking or over the past 23 weeks. Whenever there was some weakness in the markets it could stabilized so like last week When we saw in the US the S and P 500 wass close to 3000 again Today we object to 3100 So I think the light positioning Is also a reason why markets didn't correct that much as maybe many have expected because a lot off investor waiting on the sideline. Both who have missed that, really, and waiting for an opportunity to step in. So hence we are not expecting major outbreak in each direction tends more sideways one but Again if The number off infection would potentially lead to a second lock down then this would be a better new bed news and the market clearly, heaven price in this scenario. To honor no doubt You're right. But you know you could talk about a W V or you pair shaped whatever type of recovery you want to look at. The question isn't we've got other wolves of worry identified. Someone was about election coming up in the US. We've also got rising tensions, of course between Beijing and Washington, not least over Hong Kong, but other matters. Much again. Will you take me for people? I couldn't begin to recognize those, and actually, then Start looking the markets looking as though they are fairly Pollyannish. Absolutely. I mean, you don't even have to look too far ahead. Next week onwards, we starting second quarter earnings season. And even bold, The downward revision. It's continuing your vote at a slower pace, but as the own no supposed to know it Oh, and supposed to be the worst quarter since the Second World War. This supposed to be president. But like in the first quarter, we have also seen some companies, of course, but also disappointing friends. That would also be interesting to see how the markets are taking. Second quarter earnings release and would also be interesting to see These companies now finally making some prediction how the rest of the year will play out. But if you also rightly pointed out, if we look a little bit further ahead, I think US election would clearly be One ofthe key risk. We are seeing a TTE a moment. If this election then it looks like that Biden will have here a clear edge over Trump. And if I look at Europe off course Brexit still ongoing discussion here in Europe and then the usual U. S and China attention or bowl. We are Not expecting here. Any disruption for the face one deal at this moment.

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