The number of exchange-traded funds (ETFs) in Europe will continue to grow, but there are currently 241 European ETFs on a ‘death list' for profitability reasons, according to Lipper.
London's FTSE 100 slipped into the red in early trading this morning after Fitch Ratings cut Spain's long-term credit rating and predicted a slump through 2013.
UK income funds face a new threat from the eurozone crisis if the pound continues to strengthen against the single currency, leading managers have said.
Investment bank Morgan Stanley has warned the ramifications of Greece exiting the euro are more serious than markets are anticipating, with a full-scale eurozone collapse now more likely.
Citigroup's top economist Michael Saunders has forecast Greece will exit Europe's single currency on 1 January 2013, and its new currency will immediately depreciate by 60%.
Slowing industrial production is the largest headwind facing Northern Europe in the near term, according to Newton's bond manager Paul Brain.