For equity markets, the eurozone crisis remains the defining issue. Most bankers believe that equity markets will remain hostage to politics in 2012 and will oscillate between optimism and pessimism.
“Everyone is looking at what happens in the eurozone,” says Sam Dean, global head of equity capital markets (ECM) at Barclays Capital. “With market movements so dependent on political decision-making, this leaves investors trying to forecast how politicians will act, and this is not something anyone likes doing.”
