Emerging market equities are hovering near highs last seen in January 2013, after China posted stronger-than-expected economic data.
With markets having wobbled at the start of 2014, Stephanie Flanders, chief market strategist for UK and Europe at J.P. Morgan AM, analyses the global recovery and tells Investment Week where the next investment opportunities may lie.
Markets are fickle creatures. This time last year, China was a veritable investment dog for most institutional investors. Now, a short 12 months later, it must qualify as the top contrarian bet for 2014.
Sterling hit a five-year high on Monday as data from the UK's manufacturing sector came in stronger than expected.
Multi-asset investors are returning to Chinese equities, as fears of a ‘hard landing' subside and the local economy shows signs of improvement.