June's Market Outlook

Sovereign risk is virtually the only catalyst of market movements. Our main scenario envisages Greece staying in the eurozone. The alternative, i.e. an exit, would imply very high economic and financial costs for the region as a whole.

Spain is doing its homework with regard to the economy in order to lay the foundations for robust future growth. The depth and intensity of the reforms being implemented with regard to jobs, finance and budgetary stability, and the short time period in which this has happened, give rise to expectations of significant changes in fundamentals.

The agenda of political and economic milestones for the month ahead makes it necessary to adopt a more prudent approach towards risk assets in the short term.

For June's Market Outlook, please click here.