Europe

J.P. Morgan Asset Management has launched an inflation-linked bond fund investing in European debt, as the group looks to profit from the volatile market conditions across the continent.

Risk is a hot topic at the moment. The turmoil on the stock exchange has seen a big increase in market risk while Standard and Poor's has lowered their opinion of the US's credit risk.

Short-selling bans on a number of French, Italian and Spanish banks introduced earlier this month have been extended until the end of September in a bid to stem market volatility.

Spain has put in place a public sector borrowing cap in an effort to tackle its debt burden, following calls from peers in Europe to take action.

European investors who pumped billions into high-yield bonds in first half of 2011 could see asset class faced with rising default rates.

The Swiss government is preparing to unveil a CHF1.5bn (£1.1bn) package to help the country deal with its soaring currency when it meets later today, Reuters reports.

The head of the World Bank has warned the crisis of confidence sweeping through markets in recent weeks has resulted in a new 'danger zone' for the global economy.

Jeremy Thomas is manager of the Allianz RCM UK Growth fund......

The Conjecture panel discusses debt, contagion, and the outlook for European markets

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