ECB and politicians forced towards more credible solution

Threadneedle's Philip Dicken says a bleak European outlook is is cause for caution, but not excessive negativity.

European markets continued to fall in July, leaving them below the level they started the year. August has started poorly too, as the market comes to terms with a number of macro worries, be it the US debt ceiling or the eurozone debt crisis. The protracted negotiations resulting in the US debt ceiling being raised focused the market on the level of debt itself. It also sparked more debate over the sustainability of the US AAA rating. Unsurprisingly this has unnerved bond investors, especially given the ongoing unsolved crisis in Greece. The lack of resolution there has increased t...