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A Lack of Hope Among Investors

The rout in global financial markets that has spared few asset classes extended into Thursday, with Asian stocks plunging across the board, led by a 6 percent fall in Japan’s benchmark Nikkei 225 in the morning session.

With investors dumping assets ranging from bonds, currencies to equities, there appears to be a lack of hope among investors that central bank policies can generate real economic recovery, said strategists.

“We are seeing the first signs of a lack of confidence in the ability of central banks to control the interest rates, to stimulate inflation, and real GDP [gross domestic product] growth rates,” Viktor Shvets, head of strategy research, Asia, at Macquarie, told CNBC Asia’s “Squawk Box” on Thursday.

“We had all sorts of QEs [quantitative easing] of various forms for the last five years and if you look at inflation all around the world it’s falling – whether it’s the U.S., euro zone, Asia Pacific, emerging markets. I think that’s a problem,” he added.

CNBC [1]

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