Global markets may drift lower next week: Expert

Below is an edited transcript of the interview on CNBC-TV18. Also watch the attached video.

Q: Issues out of Spain doesn't seem to die down and the data out of Greece continues to be extremely bleak. Would you worry about the way things will shape up over there and the repercussions on markets globally?

A: It's certainly right to be worried if you take a one week view. Concerns today seem to be a little bit overplayed. We have had a very good rally this week. The Dow is up 0.5%, European stocks are up 2.5% and the market, which has really been at the center of the storm, the Spanish equity market, is actually up 5% on the week.

We have got a bit of disconnect between price action and sentiment at the moment. I wouldn't want to read too much into today's price action.

Q: Do you sense a little bit of risk-off on the table now. Do you think that this might be about it in terms of the pull back markets have seen or do you think there could be a bit more follow through?

A: A lot of short covering happened on Wednesday and especially on Thursday across asset classes, not just in stocks, but also in currency markets where the euro reached a high of 1.2625 yesterday. But since then, it's back to the familiar range of disappointment and selling. We are trading currently at 1.2460 in the euro. So, all of yesterday's move and more has been undone.

The sense I fear is that we are going to be drifting down a little bit lower into next week. There is a whole slue of data out of China, which for some reason, manages to release most of its data on Saturday's these days and that I think has got plenty of potential to unsettle investors.