Geoffrey Dennis, emerging markets commentator, JPMorgan, on Thursday said that he does not expect big gains in emerging markets from now till the end of the year. He, however, said that India is at a relatively better position compared to other emerging markets.
Speaking about United States Secretary of Treasury Steven Mnuchin’s comments on the trade deal, Dennis said, “We may get some reassuring news on trade over the weekend but I would be surprised if we get a deal. We are going to be on tenterhooks but I don’t believe Steven Mnuchin’s comments that we are 90 percent towards the deal. I think there is still quite a bit of work to be done."
On dollar, he added, “In my view, it is quite overvalued now. But what we don’t want to see is a relapse into a full-scale recession. We are at the top end of the range now. We need something outside that good China trade news with the US for a further breakdown on the dollar to drive this out of this trading range to the upside from here.”