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Euro Zone: ‘Great Dichotomy’ to Continue
12 Apr 2012 EDT - CNBC.com
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The problems of the euro zone are back under the magnifying glass this week, but investors need to be careful to distinguish between the less and more successful countries.

Roughly speaking, Northern European countries are still outperforming the Southern states, with markets’ sights trained on Spain and Italy in particular this week.

“The idea that Europe is one great homogenous whole which is going into recession isn’t true. There’s a great dichotomy,” Brendan Brown, head of research, Mitsubishi UFJ Securities International, told “Squawk Box Europe.”

“The big positive news in Europe is that Germany, Switzerland and one or two other countries are actually doing very well,” he said.

Germany has outperformed most of the euro zone throughout the crisis, although its growth has slowed in recent months. Denmark and the U.K. have also benefited from being seen as relative safe havens and low interest rates, according to Dan Morris, global strategist at JPM Asset Management.

Brenda Kelly, senior market strategist at CMC Markets, tipped the Italian bond auction to be biggest driver of market sentiment Thursday.

“It’s not as bad as Spain , but there’s going to be trouble ahead for Italy,” she warned.

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