In its latest market outlook report, Bank Sarasin has highlighted opportunities in the emerging markets.

Date: Apr 20, 2012

Tags: Bank Sarasin, Emerging markets, Equities

In its latest market outlook report, Bank Sarasin has highlighted opportunities in the emerging markets.

In particular, the bank favours emerging market equities, stating that falling interest rates in emerging market countries will allow monetary stimulus to counter any temporary economic weakness, especially in China.

"Emerging markets offer the greatest opportunities but also the largest risks. Falling inflation is key,” said Philipp E. Baertschi, chief strategist at Bank Sarasin. “It’s also critical that crude oil prices remain stable so that consumer purchasing power drives growth.”

The bank also notes that a lower growth rate in China is not a threat to the global economy because if the country’s authorities decide to try harder to strengthen domestic consumption, imports will dampen growth, but at the same time, strengthen global growth.