FROM China, the worries of the global investors shifted to Europe, as the swelling public deficits in Portugal, Spain and Greece threaten to plunge the eurozone into the biggest crisis in its 11-year life. Risk aversion heightened significantly, leading to the sharp sell- off of equities globally.
INCREASED risk aversion triggered by fiscal fears in Europe - and, as a consequence, a stronger US dollar - has led to widespread redemptions from emerging market equity funds.
