CHART OF THE DAY: The Moment Investors Stopped Freaking Out About A Eurozone Break-Up

button more charts
button chart prev
button chart next

The word of the day is “crexit,” which was coined by Allianz Chief Economist Michael Heise.  This is the idea that Greek will exit from its economic crisis this year.

However, many point to a speech given by European Central Bank president Mario Draghi as the turning point for the eurozone crisis as a whole.

“Draghi’s comments “within our mandate, the ECB is ready to do whatever it takes to preserve the euro” turned sentiment and substantially reduced break-up risk,” write Deutsche Banks economists.

Here’s a chart from the bank’s latest House View presentation.  It’s the percentage of investors expecting a country to exit the Eurozone over next 12 months.  As you can see, fears of a breakup have tumbled since Draghi’s comments.

chart of the day, eurozone breakup risk over the next 12 months, january 2013

Source: Sentix GmbH, Bloomberg Finance LP, Haver Analytics, Deutsche Bank Research

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at