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Percival Stanion, head of asset allocation at Barings, explained that although he considers a double-dip recession unlikely in the wake of a gloomy 2011 for traders it was important to realise the mood among investors continues to be fragile.
The market is vulnerable to sudden swings in investor sentiment making an outcome for the eurozone difficult to predict, he added.
European leaders will do enough to avoid the collapse of banking in the eurozone but debt contagion and lack of confidence are like to have an impact upon the UK.
"However, we expect the core of the eurozone to stay together, at least for the next year, and there should be no dramatic implosion even if weaker parts are brushed off," added Mr Stanion.
Chief finance officers recently surveyed by Deloitte posited a 37 per cent possibility that at least one country would leave the eurozone over the course of the year.
Posted by Greg Secker
