February 6, 2018 / 10:18 AM / a year ago

Janus Henderson co-CEO: Market falls a "not unhealthy" correction

LONDON, Feb 6 (Reuters) - Fund manager Janus Henderson's co-Chief Executive Andrew Formica said a market sell-off on fears of rising inflation was a "not unhealthy" pull-back as opposed to the start of a more sustained selloff.

Recent stock market weakness was a "correction driven by complacency" after markets had seen very little volatility in 2017, Formica told Reuters alongside fourth-quarter results.

Stock markets across Europe were lower early on Tuesday, on concerns around rising inflation.

The pan-European STOXX 600 index was down for the seventh straight session and a gauge of volatility up more than 35 percent.

"There was a huge consensus in terms of how people were positioned in markets and what we've seen is a change in people's assessment of risk and volatility," Formica said. "I actually don't think that's unhealthy."

Amid concerns about strong wage growth in the United States and the impact of a pronounced sell-off in fixed income, Formica pointed to strong corporate earnings growth, which supports companies.

"It's nothing that's I'm too worried about... it's a correction rather than a structural underlying issue that's been identified." (Reporting by Simon Jessop, editing by Maiya Keidan)

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