Investment director Michael Stanes said his firm had bought further European exposure on last week’ s weakness, while monitoring developments closely.
Stanes said there are already signs that negotiations to get out of the current crisis are underway following Sunday’s referendum including the resignation of finance minister Yanis Varoufakis, something which Stanes said could be helpful in reaching an deal.
While acknowledging it is difficult to predict the outcome of the next wave of talks, Stanes said he believes that ‘pragmatism will prevail’ and the worst case scenario of a disorderly Greek exit will be avoided.
Stanes noted that the EU has seen itself through rocky times in the past, successfully shoring up confidence in 2011 and 2012.
The ECB also has the additional tools of quantitative easing and outright monetary transactions (OMT) to help cap contagion, Stanes added, which had not been established in 2011 and 2012.
