Sovereign funds' selling could hit US$700b of European stocks

London

UP TO US$700 billion of European stocks, including major banks, could be in the firing line as the slump in oil prompts some producer countries' sovereign wealth funds to offload investments.

Fund managers and investors say recent sharp sell-offs in global markets and especially European stocks may have been exacerbated by national rainy-day funds selling parts of their equity portfolios to ease squeezed public finances.