European markets could see heavy losses in a rapid US-style flash crash, warned Nigel Thomas, manager of the £2.8bn AXA Framlington Select Opportunities fund.
Speaking on a conference call for investors, Thomas said the stock market is unable to look forward because participants are so worried about Europe, making it difficult for managers to quantify uncertainties amid continued political risk. "At the moment a flash-crash cannot be ruled out, such as the crash we saw in the US where 11% was lost in an afternoon. That could happen," he said. Thomas highlighted weak GDP growth forecasts for the UK and the US as key headwinds, and voiced concern emerging market growth forecasts could see downgrades. "Obviously global growth forecasts bein...
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