Mirabaud's chief economist: Central bank divergence biggest risk to markets

ECB and BOJ set for further stimulus

Mirabaud Asset Management's chief economist Gero Jung thinks the diverging monetary policies of central banks pose the biggest threat to global markets.

Currently, the Federal Reserve and the Bank of England are planning to raise interest rates within the next six months. However, the European Central Bank and the Bank of Japan are likely to embark on further monetary easing over the same period. With this backdrop, Mirabaud is overweight European and Japanese equities, expecting these regions to benefit from the results of this policy action. Jung (pictured) said: "The Bank of Japan is buying ETFs on the Topix, they are being very aggressive and we think Japanese equities will do well supported by this action. We do not expect a stro...