According to Praveen, chief investment strategist for Prudential International Investments Advisers, eurozone leaders surprised markets positively at the EU Summit in late June with some concrete steps to resolve the eurozone crisis that has been dragging on for three years now. EU leaders agreed to joint bank supervision by the end of 2012 and to give Spanish banks direct access to the region's bailout funds without additional austerity measures. Earlier, eurozone dodged a bullet by electing a Pro-Euro government, thereby preventing a potentially disorderly Greek exit from the Euro. "The eurozone crisis continues to cast a shadow on global markets and economies," said Praveen at Prudential's 2012 Midyear Global Markets & Economic Outlook.
Despite these issues, Praveen argues that stocks are supported by interest rate tailwinds and the Draghi-Bernanke “put,” with the European Central Bank and U.S. Federal Reserve assuring markets of their willingness to undertake further easing measures to counter the eurozone crisis.
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