“Complete” surrender by the Greeks. “Major victory” for the eurocrats.
To those who have followed Greece’s financial crisis for five years, there wasn’t much doubt who won the latest round Friday when the region’s finance ministers struck a deal to keep the bailout on track.
If Greece were to leave the Eurozone we think this will lead to a major sell-off across the board, while if a deal is reached then this could maintain equities’ bullish momentum for the foreseeable future. So far, the resilience of the markets suggests investors are confident that a deal – be it on Friday or at some point next week – will eventually be reached, which is also our base case.