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Fasdal: How I would trade a Greek deal

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There's still no deal on Greece but as one is looking more likely, the markets have been reacting positively. Saxo's Simon Fasdal says European equities are up this Tuesday while core bonds are being sold off. The risk-on movement is crushing safe haven assets, he says. German bund yields are spiking higher while the opposite is happening in Southern Europe.

If there is a deal, Fasdal says expect an equity rally with core yields moving even higher. But he warns that a higher Euro and yields that move up too quickly could threaten this picture.

So how best to trade a deal? Simon expects financial assets to benefit so he is looking at European bank equities. He also likes Spain, Portugal and Italy and expects assets there to bounce back after a torrid couple of weeks.