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World will avoid financial crisis repeat insists Societe Generale global strategist

04/02/2016

Low oil prices will continue to give a boost to US consumers, China has enough policy tools in its arsenal to avoid a hard landing, says Xavier Denis.

A drop in oil prices, worries about the health of the Chinese economy and a collapse in the stocks and bonds of commodity-producing emerging markets may worry many investors, but not Xavier Denis, the global strategist of Société Générale’s private banking arm.

Low oil prices will continue to give a boost to US consumers, China has enough policy tools in its arsenal to avoid a hard landing and the woes of the developing world are unlikely to infect the rest of the world, according to Mr Denis.

Among the investment ideas he likes, Japanese and Indian stocks are two of his favourite for this year as both are net energy importers and will benefit from the spell of cheaper oil and, to differing degrees, trade at attractive valuations.

“We still keep reasonable opti­mism about not only the macro outlook but also in terms of investments,” Mr Denis, who is based in Hong Kong, said on Wednesday in Dubai.

 

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