Earnings, direction of $ to show way for global mkts: Verstraete

Central banks world over were accommodative, yet the risk-off sentiment in global markets seems to be back.

Investors are skeptical about the upcoming earnings season and strength of the euro, says Bruno Verstraete of Lakefield Partners, adding that any good news in US market is still considered a bad news for other markets because there is then the possibility of a rate hike by the Federal Reserve.

According to Verstraete, US dollar will show the way for the market – weaker the dollar better it is for commodities and emerging markets because it will help bring back risk-on in the market.

However, in the short-term, earnings will be a guide for the market. Any positive surprise would aid market rally, he says.