Ashburton’s Hanson looks to emerging market currencies
Ashburton’s Tristan Hanson has said emerging market currencies will strengthen against major players, such as the US dollar and euro.
Mr Hanson, head of asset allocation at the investment manager, said as political troubles continue to plague the debt-strapped eurozone, emerging markets were gaining traction.
“Concerns over the European sovereign debt crisis are once again very elevated following the recent elections, with François Hollande assuming the French presidency and a Greek election result failing to support a coalition between the two traditional parties that agreed the latest European Union bailout,” he said.
Mr Hanson added that the outlook for Spain remained “bleak” as the largest peripheral economy was battered by high unemployment and increasing loan losses.
He said the growth outlook in the US had “deteriorated” as two consecutive months of jobs data disappointed the market.
But the manager said he believed the growth rate in the world’s largest economy was “sustainable in the range of 2-2.5 per cent”, but he warned the fiscal situation in the US posed a “material risk”.
Mr Hanson said Asburton expected the recent fears over Chinese growth to subside over the second half of the year, if not sooner. But he said in Europe, the economic environment would remain “very difficult” but pointed out equity markets are now trading materially lower than at the end of March.