At this stage we prefer US over Europe and even some parts of Latin America, said Bruno Verstraete, Lakefield Partners.
He said that this is not the first time that instability came about in the Merkel government. We have seen that before.
“The market see it as a sign of weakness for Europe given the strength of the German economy which has been pulling European economy as a whole,” he added.
According to him, the uncertainty linked with all the international political pressure put on the tariffs is not a good sign for the market and in a weak Europe it only adds oil to the fire.
“It is not fully priced in yet. We need to see where it goes and the market will eventually stabilize on that news,” he further added.
The demand for commodity is still there and the oil prices have gone up quite considerably, he said.
"We prefer technology index in India as the growth is dominant in India," he said.