St. James's Place News

29 May 2012

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Markets remain volatile over Greek exit worries

Greece and eurozone reach end gameGlobal equity markets endured a choppy week following the previous week’s sharp sell-off caused by worries over a possible Greek exit from the eurozone. The main share indices seesawed as investors weighed up the probability of a ‘Grexit’ with hopes, as ever, of European policymakers coming up with a solution or at least another temporary fix.

True to form, the latest informal euro-summit was light on action, merely reiterating leaders’ desires to see Greece stay in the euro but with no concrete plans being announced. There was, however, speculation over the weekend that secret plans are being drawn up in Brussels for a European rescue fund that could seize control of struggling banks across the region, which would halt the steady escalation of the eurozone debt crisis.

Also in this week's bulletin...

  • Prospects for growth appear, once again, to be stuttering, as the latest data from the OECD reflects a slowdown in Europe and signs of weakness in what has been the world’s fastest-growing economy, China.
  • The IMF’s annual report on the UK economy prompted the Deputy Prime Minister to announce that the government is preparing a 'massive' increase in state-backed investment in housing and infrastructure.
  • We hear from Nick Osborne of BlackRock who gives an insight into absolute return investing and why things don’t always go according to plan.

View this week's Market Bulletin (PDF), which contains thoughts and opinions of St. James’s Place and our range of investment managers on the key issues affecting investors.

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