Schroders’ Azad Zangana, European Economist, and David Scammell, Head of European and UK Interest Rate Strategies comment on the deepening of the European crisis below.
Key Points
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As concerns spread to Spain and Italy, and EU leaders debate how to deal with Greece, investors lose patience.
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Our central view is that the crisis is ultimately resolved – provided there is political commitment, growth, and investor confidence.
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We would argue that recent developments have been uncomfortable for Spanish markets but the situation is retrievable.
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In the short-term, though, expect volatility given investors’ current doubts.
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