The changing face of fear: China crisis replaces Grexit as biggest risk

Fund managers snap up Europe as Greek worries recede

European fund managers have increased their allocations to Europe at the fastest pace in six months as Greek fears are replaced by worries over a slowdown in China, according to a survey by the Bank of America Merrill Lynch.

Concerns over the impact of Greece exiting the euro have subsided, according to the survey, as fund managers become more concerned about a Chinese recession and an emerging market debt crisis. A recession in China is now seen as the greatest tail risk to global markets, with 52% of fund managers polled naming it as their top concern, while the number of investors expecting a eurozone breakdown fell to 2%, down from 26% a month ago. Argonaut's Russ: China a bigger threat to Europe managers than Greece "As fears on Greece recede into the distance, allocations to European stock...