Markets not giving unidirectional trends, themes, said Glenn Maguire of ANZ

NEW DELHI: Investors are not getting unidirectional trends in markets amid conflicting global dynamics. However, Glenn Maguire, Chief Economist, Asia-Pacific, ASEAN at ANZ is confident that the second half of the year would be characterised by stronger growth as the combination of lower oil prices and easier monetary policy kicks in.

The dissonance in global trends was evident in the insufficient progress made at talks between Greece and its creditors, and the unexpected lending rate cut by China, which shows that transition of the Chinese economy to a more sustainable consumption led growth is proving to be difficult.

Given the directional conflicts, increased market volatility is in order, Maguire told ET Now. "Mny people will look in for a sort of more even synchronised recovery led by the US economy and the US consumer that would be lifting (other economies)," Maguire added. Despite the rise in US bond yields, Maguire believes that emerging markets, including India, will not stay stressed.

"I do not think they will stay stressed. I mean what we need to look at is, typically, when we look at capital inflows and outflows from emerging markets, it is driven by growth differentials and interest rate differentials. Now on the growth differentials argument, obviously if we do move to a recovery that is US-led and US consumption- led, it is going to be a rising tide that lifts all ships," Maguire said.