Marcus Ashworth, Head of Fixed Income at Banco Espírito Santo de Investimento S.A, really packed a punch today talking about the latest instalment of the Greek Eurozone tragedy.
Greece won’t be able to absorb more German austerity
Ashworth has little confidence that the deal will last, and suspects that the German proposal of a temporary Grexit, was rooted in scaring the French, and Greek President Tsipras into action. He added that the current deal is actually worse than the original, and doesn’t expect it to get through the Greek Parliament this week. Speaking with the expected fatigue of a long suffering observer of European politics, he added that he doesn’t expect the deal to last, “as they never do.” and that the can is being firmly kicked down the road, again.
Thinking from a traders perspective, Ashworth added that he would be fading any short term gains on recent news.
Chinese stocks stable again?
Looking to China, Ashworth believes that the Chinese market is returning from hibernation, with some of the frozen stocks, trading again but some 36% are still frozen. He added an interesting line on the situation between dual listed stocks in China and Hong Kong where arbitragers took advantage.