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U.S. to lead global growth - Wells Fargo's Paul Christopher

Tuesday, December 01, 2015 - 03:39

Expect global growth to continue to grind higher in 2016 led by the U.S. consumer says Paul Christopher, Head Global Market Strategist at Wells Fargo Investment Institute.

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US stocks moving higher despite weak manufacturing data out today. Let's discuss this and more what Paul Christopher had a global market strategist at Wells Fargo investment institute thanks so much for joining us all. So what's behind the market is today. Well look the markets saw the disappointing manufacturing data but really there's not a lot that's new in that. We already knew for example that there was going to be some inventory correction in the fourth quarter that's probably counting for the week dated today but if you go overseas there's some better data from Japan. And low unemployment rate for the for the Euro zone. Which is really encourage markets and don't forget we still have the background the Federal Reserve that strong employment report we got the beginning of November and expecting. More good news on jobs later this week. I think the markets are still focused on that going forward all. Markets have been very I believe data sensitive over the past few months as we await the mid December fed meeting. What do you expect from the Fed indecent. Well we've been saying for some time we expect the Fed to raise rates one time in December and then probably another two more times. A quarter point each time some time in 2016. May be second quarter sometime and whispering in the possibly. Fourth quarter after the election that gives the Fed lots of lots of time to see how their interest rates hikes are gonna play out the economy so much attention sit US investors paid to the European Central Bank which is scheduled to meet later this week will be of the European Central Bank has caught investor attention. By its willingness and even more vigor in promising additional stimulus. There was a strong into that stimulus given in the previous meetings. Well what happens tomorrow as we think they'll probably end up cutting deposit rates it may be a little bit of a disappointment for some investors. Who may be looking for the European Central Bank to commit additional bond buying. But they probably aren't in good position. To do that right now they'd rather use the the lever closer at hand which might be a change in interest rates lowering them further to negative territory. Let's look ahead to 2016. What is your outlook on the global markets and particularly the US market wells funny you should ask that we do have our global market and economic outlook coming out this afternoon 4:30 eastern time for the for the year when he sixteen. Five people can find them on our website. We are looking for he's still on another year of grinding higher growth. Led by the consumer here in this country. And probably gradual recovery led by the credit cycle improving loan demand in loan availability in Europe and in Japan were looking for stronger exports especially to Europe. And the US as those two regions lead the way higher growth. Next year so. Think about those three economies US Europe and Japan the three big heavyweights the developed in the developed world. Leading the world still a little bit faster growth rate next year and making up for a lot of the slowdown we think will continue in China and many emerging markets so what are you advise your clients are. Will still a good environment with inflation low. And interest rates nevermind the Fed raising three times their shall there be a low level of interest rates. And inflation even if it rebounds to normal will be still quite benign it's still really going to be a good environment we think for equities. So we prefer equities over bonds and because the US is still leading the way we like the US over Europe. And Japan and then those two. Better than emerging markets go full. Paul thank you so much pleasure. That was Paul Christopher head global market strategist at Wells Fargo investment institute I'm sure he had Brantley this threat to earth.

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U.S. to lead global growth - Wells Fargo's Paul Christopher

Tuesday, December 01, 2015 - 03:39