Sports · Asia Post
Prashant Paroda, Portfolio Manager at Allspring Global Investments, discussed market outlook during a recent interview. He highlighted uncertainty around the Strait of Hormuz as a key factor keeping global and Indian equity markets under pressure, with oil prices expected to remain elevated until progress is made in Iran-US negotiations. "So, I believe it's just a question of who'll blink first, but till then, the markets will be range-bound, and oil will continue to rise until we find any sort of breakthrough in Iran-US talks," he stated.
Paroda also noted that the US Federal Reserve is likely to postpone interest rate hikes until after the November elections due to political sensitivity. "This is an edited transcript of the interview." In response to a question about the Strait of Hormuz flare-up affecting Indian markets, Paroda explained that neither Iran nor the US appears willing to back down, with both sides delaying action until a breakthrough occurs. He observed that rising diesel prices in the US, nearing $6, are starting to impact consumers, but the US is taking a cautious approach, hoping for a resolution before elections.
From Iran's perspective, the situation remains unclear regarding their ability to resist a potential US blockade. Regarding the Federal Reserve, Paroda suggested that a rate hike decision might be delayed until after the elections due to political considerations.
Source: CNBC TV18
