HSBC sees 'decent chance' of Q4 market rally

HSBC Global Asset Management believes there is a "decent chance" of a global markets rally in the fourth quarter, as investors are currently overly pessimistic about the outlook for economic growth.

Philip Poole, the global head of macro and investment strategy at the group, says while growth may be "sub-trend", the manager does not anticipate a double dip. He told Bloomberg a rebound in share trading volumes after the summer and the continued availability of liquidity driven by central banks will also help to boost equities. "Markets have been too negative and at some point that will reverse," Poole says. "There's a decent chance of a fourth-quarter rally as going into September, investors focus on the yearend and risk appetite could well pick up." Poole says Russia is the...