Equities

Asset allocators are selling down equities to cut risk exposure as markets digest the EU's solution to the Greek crisis, and US debt fears persist.

Eurozone leaders revived hopes for the future of the single currency last week by agreeing €109bn of further aid for Greece, some of which will be funded by bondholders as the country is allowed to selectively default.

J.P. Morgan is set to overhaul its £292m America Equity fund next month, slashing 50% of the portfolio's holdings.

Emma O'Neill, investment research analyst at OBSR, examines the best performing Continental European funds.

Managers have welcomed the €109bn bailout plan for Greece agreed by European leaders yesterday, saying although sovereign debt crisis is not over, the latest plans are a step towards a solution.

Newton income manager Iain Stewart has warned the problems in Greece are just the tip of the iceberg of a ‘monetary distortion' across the developed world and could trigger 'debt dominoes' throughout Europe.

EU leaders have agreed a further €109bn (£96bn) bailout for Greece, one-third of which will come from private sector bondholders.

ON JAPAN

ON NORTH AMERICA

European markets have surged on reports eurozone leaders will back a 'selective default' on Greek debt.