Jan Lambregts of Rabobank gave his views on why the Asian and European markets are down despite a positive handover from the Wall Street.
Below is the verbatim transcript of Jan Lambregt' interview with Ekta Batra & Mangalam Maloo on CNBC-TV18.
Ekta: What is the one thing which is plaguing the European markets as well as the Asian markets because despite a positive close on Wall Street, Asian markets didn't take that forward?
A: We had a reasonable start to the week. Equity markets closed up a bit, we saw oil prices go quite a bit higher to USD 34 per bbl and not to say that it was all great and there wasn't much fundamentals behind that either but it didn't look too bad. I guess if anything we had some Purchasing Managers Indices in Japan, in the Eurozone all disappointing and that may put a bit of dent in the confidence. The International Energy Agency (IEA) also coming out and saying that rebalancing for the oil market is a story of 2017 rather than 2016, it did put a dent on oil prices there. So that may conspire the session to be a bit of a negative one and that to sip into europe.
Mangalam: You indicated that there was no fundamental reason for the bounce back that you saw in the last week itself as well. Could this be the theory that the fact that the markets are making some more place to go lower from here?
A: You look at the massive selloff at the month of January and much of February - that wasn't all driven only by fundamentals either. It was linked somewhat to worries about China but at least in Chinese case, it was mostly Chinese equity markets which have gone boom and then burst and which are not very much linked with the global economy or the global markets and it wasn't so much that Chinese data was disappointing left, front and centre. On the contrary that has probably been neutral to slightly negative.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
