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ECB Policy Risks Being More Potent Than Fed: JPMorgan Asset

  • ECB tightening could spur debt investments and strengthen euro
  • Firm sees four Fed hikes, U.S. yields can test 2.3%: Hallam
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Amid the frenzy of Federal Reserve rate hike speculation, investors should keep in mind the impact if its European peer follows next year -- a shift that could trigger a wave of cash flooding back to the continent and turbocharging the euro.

That’s the view of Roger Hallam, a two-decade markets veteran at JPMorgan Asset Management who sees the potential for the tide of hundreds of billions of euros in bond outflows since 2015 reversing if the European Central Bank starts laying the groundwork for policy normalization in 2023.