Greek Crisis: An Agreement, Finally – But Now Comes the Hard Part
July 13, 2015
In this note, Monica Defend, Head of Global Asset Allocation Research and Andrea Brasili, senior economist for the Eurozone, comment on the agreement on Greece reached today at the EU Summit. We believe that having a deal is good for the Eurozone as opposed to no deal. This could be considered a step towards more European integration but it needs to be followed by more substantive steps to reinforce the union. On this front, time will tell. On financial markets, we see high volatility ahead, not only driven by factors related to Greece, but to others as well. Stretched valuations across asset classes are, in our view, fertile soil for volatility driven by erratic news flow.