SaxoTV

Deal or no deal - how to trade Greece

518 views
June 18, 2015 capital controls, capital outflows, ecb, equities, equities trading, equity, equity index, equity market, equity markets, equity platform, equity portfolio, equity portfolios, equity research, equity strategy, equity trading, eu, eur, euro, euro area, euro zone, eurogroup, europe, europe growth, european, european central bank, european economy, european recovery, european union, eurozone, eurozone crisis, eurozone economy, eurozone recovery, greece, greece bailout, greece crisis, greece debt, greece debt crisis, greece european union, greece exit, greece germany, greece money, greek, greek bailout, greek crisis, greek debt, greek economy, greek election, greek finance minister, greek finances, greek negotiations, greek talks, greekdebt, greexit, grexit, imf, imf eurozone, imf forecast, imf greece, imf payment, qe, saxo, saxo bank, saxo tv, trading, tradingfloor.com, troika
If a deal is finally agreed with Greece, Saxo's Teis Knuthsen says European equities will jump around 10%. He believes this will confirm what a good year 2015 has been for the continent.

If Greece, however, decides to walk away from talks, Knuthsen predicts it will be a 'horrible experience' for the country. Although it will also be stressful for the Eurozone, he expects this to last only a few days because of the strength of the economy combined with QE.

Teis feels it's Greece that has so much more to lose from a Grexit than any politician trying to protect the European project. For that reason, he expects Greece to accept a deal.

Because he thinks Greece is fundamentally a political problem, Teis says it can be hard to predict what will happen next. For that reason he says investors may want to step aside from the market for a few days until things are more settled.