The changing face of fear: China crisis replaces Grexit as biggest risk

Fund managers snap up Europe as Greek worries recede

Natalie Kenway
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European fund managers have increased their allocations to Europe at the fastest pace in six months as Greek fears are replaced by worries over a slowdown in China, according to a survey by the Bank of America Merrill Lynch.

Concerns over the impact of Greece exiting the euro have subsided, according to the survey, as fund managers become more concerned about a Chinese recession and an emerging market debt crisis. A recession in China is now seen as the greatest tail risk to global markets, with 52% of fund managers polled naming it as their top concern, while the number of investors expecting a eurozone breakdown fell to 2%, down from 26% a month ago. Argonaut's Russ: China a bigger threat to Europe managers than Greece "As fears on Greece recede into the distance, allocations to European stock...

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