Bond managers are buying back into European government debt, as worrying inflation figures revive fears the eurozone could sink into a period of Japan-style deflation.
The most read story on Investment Week's website this week concerned outgoing fund manager Neil Woodford and how Invesco Perpetual is moving to protect investors in his funds.
UK markets have fallen this morning following the surprise announcement yesterday by the European Central Bank (ECB) that interest rates would be cut to 0.25%, and the shock downgrade of France's credit rating.
The European Central Bank has announced a surprise cut in interest rates to 0.25%, sending the single currency tumbling.
A fresh long-term refinancing operation (LTRO) launched by the European Central Bank (ECB) will not have as significant an impact as those seen in 2012, according to AXA Sterling Strategic Bond manager Nick Hayes.
Following six consecutive months of contraction, the eurozone successfully returned to growth in Q2 this year, with GDP increasing at a better-than-expected rate of +0.3% quarter-on-quarter (QoQ).
Investors were able to enjoy their summer holiday this year without losing too much sleep.