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Deal or no deal - how to trade Greece

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If a deal is finally agreed with Greece, Saxo's Teis Knuthsen says European equities will jump around 10%. He believes this will confirm what a good year 2015 has been for the continent.

If Greece, however, decides to walk away from talks, Knuthsen predicts it will be a 'horrible experience' for the country. Although it will also be stressful for the Eurozone, he expects this to last only a few days because of the strength of the economy combined with QE.

Teis feels it's Greece that has so much more to lose from a Grexit than any politician trying to protect the European project. For that reason, he expects Greece to accept a deal.

Because he thinks Greece is fundamentally a political problem, Teis says it can be hard to predict what will happen next. For that reason he says investors may want to step aside from the market for a few days until things are more settled.