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Fitch warns that Europe still deep in crisis

FXstreet.com (Barcelona) - According to a report released today by Fitch Ratings, a poll conducted among European fund managers revealed that the majority do not expect the crisis to end anytime soon.

41% of the investors who took part in the survey indicated that the efforts of EU officials and the ECB's actions have already placed Europe on the road to recovery. The rest however believed that the worst of the crisis hadn't passed yet.

These are divided into two camps: “29% who feel that this is a short-lived period of market calm; and 30% who said markets are irrationally exuberant, ignoring the weak economic outlook for Europe.”

Fitch also reported that many (86%) were concerned about the impact of a prolonged recession on European credit markets. Few respondents were worried about the risk of high inflation, while 29% pointed to deflation as a viable threat.

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