Ion-Marc Valahu est interviewé par Bloomberg – 20.08.2015
(BN) European Stock Selloff Intensifies Amid Global Growth Concern
“It’s a combination of factors that are taking down stocks: Chinese growth slowing down, China’s market crash, the oil selloff and fears of all this spreading to the U.S. and Europe,” said Ion-Marc Valahu, co-founder and fund manager at Clairinvest in Geneva.
European Stock Selloff Intensifies Amid Global Growth Concern
2015-08-20 08:49:09.57 GMT
By Inyoung Hwang and Namitha Jagadeesh(Bloomberg)
Mounting concern about weakening global growth and uncertainty about the timing of a U.S. rate increase fueled a second day of losses for European stocks. The Stoxx Europe 600 Index lost 0.9 percent to 377.88 at 9:45 a.m. in London. The gauge is tracking a rout in emerging-market shares as investors speculate China’s slowing economy will have repercussions worldwide.
Swatch Group AG and Cie. Financiere Richemont SA slid at least 1.3 percent, leading luxury-goods shares lower, after data
showed Swiss watch exports to China tumbled in July. “It’s a combination of factors that are taking down stocks: Chinese growth slowing down, China’s market crash, the oil selloff and fears of all this spreading to the U.S. and Europe,” said Ion-Marc Valahu, co-founder and fund manager at Clairinvest in Geneva.
Fed officials signaled concern about low inflation even as they said conditions were nearing the point where the U.S. economy could withstand a rate increase from the current 0.25 percent, minutes from their July meeting showed yesterday.
Markets are pricing in a 38 percent probability the central bank will act in September, lowering the odds from 48 percent two
days ago. “Delaying an interest-rate hike only creates volatility, Valahu said. ‘‘If the U.S. economy cannot take a small Fed funds at 0.5 percent than the economy has bigger problems.’’
Stock Swings
The Stoxx 600 has fluctuated between intraday gains and losses for three of the past four days, the longest streak since
June. Since China’s currency devaluation last week, the equity measure has declined 5.5 percent. Carmakers and miners have led losses, with Germany’s DAX Index down 15 percent from its record and poised for its lowest level since January. Gamesa Corp. and Vestas Wind Systems A/S slid 4.1 percent or more after Credit Suisse Group AG downgraded the wind-turbine makers. Sunrise Communications Group AG tumbled 6.4 percent after cutting its 2015 revenue forecast. Miners rebounded from a seven-day drop, the only industry group to advance today. Polyus Gold International Ltd. rose 2.9 percent after saying first-half earnings jumped 50 percent. Kaz Minerals Plc surged 14 percent in London trading after Kazakhstan allowed its currency to devalue. The miner, which has 60 percent of its costs denominated in tenge, said it will benefit from the decline.
Straumann Holding AG gained 2 percent after raising its annual sales-growth forecast. Royal Ahold NV climbed 3.8 percent after the Dutch grocery chain reported quarterly profit that topped analysts’ estimates. Delhaize Group, which is merging with Ahold, added 2.3 percent.