Greek deal may trigger risk-on trade in market: JPMorgan

Adrian Mowat, chief Asian and emerging equity strategist at JPMorgan spoke to CNBC-TV18 about what he makes of the changes seen in Greece overnight. Reports say that the nation is closer to the largest sovereign debt restructuring in history and the bailout may actually see Greece move ahead from concerns over a default. Check out his comments.

Below is the edited transcript of the interview. Also watch the accompanying video. Q: If indeed the Greek deal goes through today along expected lines do you think it could usher in another period of risk-on for global markets which have tended to consolidate and correct a bit over the last fortnight or so?
A: I think we have had two items which were excuses for a bit of profit taking - one was the Greek deal and the other was Premier Wen talking about a 7.5% growth rate out of China.
Our view is that this Greek deal has sort of 90% chance of getting through if anything, I think the confidence level is higher, and we have been focusing on Italian and Spanish bond yields and those have been behaving extremely well. In fact, the spread of Italian bonds over German bunds has moved below 300 bps for the first time in about nine months. This matters because Greece in itself defaulting the Greek economy is 2% of Euro area GDP, 3% of Euro area debt. That isn