BHP, Rio Tinto shares rise as peer Vale posts smaller-than-feared Q2 profit drop
LONDON, March 10 (Reuters) - Investors shouldn't panic after
global markets crashed due to a collapse in oil prices and fears
the fast-spreading coronavirus could push the world economy into
recession, one of Europe's top asset managers said on Tuesday.
"As of today, we believe that markets have gone from being
overly complacent to overly pessimistic, discounting a prolonged
period of stagnant growth," Amundi AMUN.PA chief investment
officers wrote in a note to clients.
"Our central case, instead, is one of a temporary setback,
although more prolonged compared to what we were expecting a
month ago, followed by a recovery," they added.
Expecting central banks to intervene and governments to
implement fiscal stimulus to support growth, Amundi said
opportunities could arise for long-term investors.
Global stock markets plunged, yields on U.S. and German
sovereign bonds dropped and oil prices collapsed on Monday after
Saudi Arabia launched a price war against Russia, with investors
already spooked by the coronavirus epidemic.
Asian and European stock markets were trading modestly
higher on Tuesday as hopes of stimulus and recovering oil prices
reassured traders.