July 22, 2011
Euro zone leaders have treated a symptom aggressively with their second bailout plan of Greece, but for many investors the underlying condition remains and could flare up again as soon as summer is out.
As Barclays Capital put it so succinctly on Friday morning: "More than expected but not enough to make us sleep comfortably."
Investors will be heaving a sign of relief that a bailout was agreed, especially as it included some respite for Ireland and Portugal, beefed up the bloc's future crisis-fighting mechanisms and did not wallop private bond holders too hard.
The morning-after mood was encapsulated by the euro rising around 1 percent against the Swiss franc.
The latter has been the safe-haven currency of choice during the debt crisis, a far better gauge of investor attitude than the euro-dollar rate, which carries a lot of U.S. debt baggage with it.
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