Portugal's constitutional court has ruled against the country's planned austerity programme, putting its £78bn bailout package in jeopardy and creating a fresh crisis for the eurozone.
Guy Monson, Chief investment officer and managing partner at Sarasin & Partners, reveals the key factors that he expects to drive markets in 2013.
Invesco Perpetual's Stephanie Butcher has moved overweight Spain and added names from Ireland and Portugal to the European Equity Income fund, taking the view stocks are "too cheap" and investors are over-paying for core, defensive names.
The Republic of Ireland has returned to the capital markets for the first since it received an international bailout in 2010.
Niall Gallagher, European equities manager at GAM, has found value in unloved peripheral European equities overlooked by risk-averse investors.
The single currency strengthened against the dollar today as Spain was granted a €100bn EU and IMF bailout to prop up its banking sector.
Baillie Gifford's James Anderson has bought into the Italian stock market for the first time in years, claiming Italy is in a better financial position than the UK.