See 5-10% selloff in European markets: Credit Suisse

Written By Unknown on Selasa, 15 April 2014 | 16.02

Parker sees the risk of a 5-10 percent selloff in European markets, but does not see it as a start of a bear market.

Robert Parker, Senior Advisor - Investment, Strategy & Research of Credit Suisse (UK) believes geopolitical and deflationary pressures are keeping European markets on its toes.

The European Central Bank (ECD) has made it clear that it is ready to take unconventional policy steps to fend off a "too prolonged" period of low inflation, though for now it expects inflation to rebound slowly.

Also Read Euro zone needs low, possibly lower rates: ECB's Coeure

According to Parker, the ECB is facing a sort of credibility issue. "Investors are basically saying that's all good in terms of making statements but we want to see the action," he told CNBC-TV18's Reema Tendulkar and Ekta Batra.

Parker sees the risk of a 5-10 percent selloff in European markets, but does not see it as a start of a bear market.


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