Investors bearish on China, upbeat on Europe, Japan

Investors are bracing themselves for a slowdown in China, with commodities allocations hitting a new four-year low, although some optimism is returning to the eurozone, while Japan remains the most desirable country to be overweight, according to Bank of America Merrill Lynch’s May fund manager survey. One quarter of May’s respondents cited a “hard landing in China and a commodity collapse” as their number one risk, with a net 8% of fund managers in Japan, the Asia-Pacific rim and…