Schroders' Maisonneuve: US in a 'volatile state'

Schroders head of global equities Virginie Maisonneuve believes the US economy is in a volatile state between weak macro data and strong corporate results.

While investors have been disappointed in recent weeks with poor economic figures, especially the weaker-than-expected GDP growth last Friday, US stocks surged to a 10-week high yesterday as companies continue to post strong Q2 results.

"The US economy is a volatile state at the moment," Maisonneuve, the co-manager of the recently launched Schroder Global Alpha Plus fund, told Bloomberg TV.

"There is lot of weak data in terms of consumer demand - unlike in the industrial sector, where companies have actually been doing very well," she says.

"We still have this plus and minus dynamic, with macro data very volatile and companies data very strong. Clearly the markets do not like this."

Looking globally, Maisonneuve is confident Chinese growth will rebound after slowing recently from policy tightening.

"What we are seeing right now is the effect of what has been going on for the last six months, the withdrawal of stimulus. The third quarter will be the trough and Q4 will be better," she adds.

"We have to remember there is a new five-year plan coming up; a lot of these details will be announced in October at the Government meeting. I would expect China will be in better economic shape than it is right now.

"For the global economy, in the short term the markets will continue to be volatile, however a lot of this should in the price already."