China and emerging markets slowdown concern eases in fourth quarter

According to latest survey by Barclays research, investors and fund managers around globe are less concern on emerging market and China slowdown, which explains recent rally in equities both in developed market as well as emerging markets.

• However, according to the survey, China and EM slowdown is still the biggest threat over the course of next 12 months but less than 35% fund managers marking it to be most worrying compared to close to 45% in third quarter.
   
• Survey also showed less than 10% are worried over policy hike from FED, compared to close to 20% in the first quarter.
   
• While concerns regarding FED policy withdrawal, weak China and EM growth, Euro area tensions has eased in fourth quarter, risk perception over de-anchoring inflation expectations, weak developed market growth and geo-politics have moved up.
   
• Concerns over developed market growth have hit highest level in fourth quarter, compared to prior three. More than 20% are worried over so.

Chart courtesy Financial Times.