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Fed hike imminent but eyes on commentary: JP Morgan AMC

Until the Fed rate hikes next week, global markets are likely to remain quiet and consolidate, says Ben Luk, Global Market Strategist, JPMorgan Asset Management.

Ben Luk, Global Market Strategist, JPMorgan Asset Management clearly believes that the US Federal Reserve will hike rates next week on back of strong payroll numbers and wage rates adding that it will be a mistake if Fed decides not to hike.

Until the rate hikes next week, global markets are likely to remain quiet and consolidate, says Luk in an interview to CNBC-TV18.

However, the focus, he says will be on how Fed plans its strategy to raise rates through 2016.

Meanwhile, there is a consensus belief that Fed will hike gradually and post the first hike markets will rally, which he agrees will happen because volatility is basically related to uncertainty.

He likes India relative to other emerging markets and says that the sell off seen through the year was because the expected Modi reforms did not take place. However, he expects growth trend in India to continue improving going forward and Fed rate hikes to in fact benefit India.

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