Causer forecasts turnaround in risk assets

Invesco Perpetual's Paul Causer is predicting risk assets will rally until at least the fourth quarter following the "marked turnaround" in sentiment in European markets early last week.

Causer, co-head of the group’s £12.9bn fixed income range, is confident economies will avoid a double-dip recession and believes improving signs such as the recent European stress tests and the watered-down Basel III regulations are all positive in building investor momentum. While risk assets have suffered over the past few months on European sovereign debt concerns and fears over the stability of a number of banks, Causer says recent government and regulatory interventions are beginning to have a positive impact. “From April to June we saw some pretty awful months. There was Greece,...