Global Growth Story Not Over Yet, Says Jefferies’ Sean Darby

The global growth story is far from over as investor appetite for riskier assets remain intact despite political uncertainties across the globe.

That’s the word from Sean Darby, chief global equity strategist at Jefferies. Investors have a broader of stocks to choose from, Darby told BloombergQuint in an interview today. Global investors pumped in $43 billion into equity markets last week, the highest inflow in 2018, according to Bloomberg data.

Darby expects the equity markets to make another dash higher after the two-day meeting of the U.S. Federal Reserve’s policy-setting committee this week.

Risk For Equities

The Federal Open Market Committee’s median estimate in December called for three hikes for 2018. A more hawkish central bank in 2019, with more than hikes than anticipated, could augur badly for global equities, Darby said.

Also Read: Powell Jumps in Driver's Seat as Fed Weighs Speed of Rate Hikes

Will Oil Play Spoilsport?

With a majority of the commodity complex, barring food and natural gas, having done well in the past year, Darby does not see an end to the commodity story in the medium term. He also does not expect a serious lapse in oil prices over the next 6-12 months.

Impact Of Potential Trade War

Any potential trade war will be instrumental in limiting the foreign direct investment into a particular country, according to Darby. A situation as complex as a trade war will have a direct impact on a country's gross domestic product and lead to a rise in domestic costs.