A senior European Central Bank(ECB)policymaker has issued a fresh warning the impact of the US Federal Reserve reducing its massive stimulus programme might exceed that of 1994.
Olly Russ, manager of the Argonaut European Enhanced Income fund, is buying into asset managers in Europe, favouring opportunities in financials which provide an alternative to the banking sector.
European fund managers have rotated out of blue-chip defensives in favour of more economically sensitive cyclical stocks as they call the end of the sovereign debt crisis.
A senior Federal Reserve economist has criticised the European Central Bank for resisting further monetary stimulus.