Bruno Verstraete of Lakefield Partners, in an interview with CNBC-TV18, on Wednesday said “We are still not in a stable economic scenario" and it is very much stimulated both by monetary and fiscal policies.

Share Market Live

NSE

In terms of COVID related jitters, he said, “The market needs to have a normalization of economic circumstances to judge where are we going, where are the earnings going and at this stage, there is no visibility on that.”

According to him, Europe is lagging on the vaccination speed with the exception of the UK.

“It is clear that the sooner and the faster everyone is vaccinated, the faster the economy can open up again and that will have very large repercussions on economic growth but also on currency evolution,” he stated.

“The vaccination speed has become an economic tool and that every country tries its best to speed it up and to ramp it up as fast as possible. What is worrisome is that the infection seems to affect the younger people at this stage."

"So the next lockdown will for sure involve school closings, which will then have repercussions on factory workers that need to stay home to take care of their kids,” he added.

He believes that emerging markets (EMs) versus developed market (DM) trade is very much interest rate driven.

Watch accompanying video for full commentary…

(Edited by : Bivekananda Biswas)

First Published:Mar 24, 2021 4:35 PM IST