LONDON (Reuters) – The most profound event of the past week for investors may not have been either the on-off referendum plans in Athens or the machinations of the Group of 20 in Cannes, but a comment from Ben Bernanke in Washington.

The Federal Reserve chairman essentially pledged to take more action — if necessary — to make the U.S. economy stronger.

Looked at from one standpoint, this was like saying to investors that if the euro zone crisis starts dragging Europe into recession, the Fed is there to help bail out world growth and maintain flows into riskier assets.

Conversely, if the euro zone does manage to contain its Greek problem then investors will be able to continue the risk rally that began in the lead up to the latest bailout agreement.

“That’s better news than not, but we have to be cautious,” said Karen Olney, head of European Thematic Research at UBS.

“The U.S. will probably be one of the stronger pockets of growth in the developed world over the next year or so. The euro zone seems to be the swing factor.”

A surprise interest rate cut from the European Central Bank, along with a confident performance from new president Mario Draghi, will have helped risk appetite in the otherwise crisis-ridden euro zone.

LONDON (Reuters) – The most profound event of the past week for investors may not have been either the on-off referendum plans in Athens or the machinations of the Group of 20 in Cannes, but a comment from Ben Bernanke in Washington.

The Federal Reserve chairman essentially pledged to take more action — if necessary — to make the U.S. economy stronger.

Looked at from one standpoint, this was like saying to investors that if the euro zone crisis starts dragging Europe into recession, the Fed is there to help bail out world growth and maintain flows into riskier assets.

Conversely, if the euro zone does manage to contain its Greek problem then investors will be able to continue the risk rally that began in the lead up to the latest bailout agreement.

“That’s better news than not, but we have to be cautious,” said Karen Olney, head of European Thematic Research at UBS.

“The U.S. will probably be one of the stronger pockets of growth in the developed world over the next year or so. The euro zone seems to be the swing factor.”

A surprise interest rate cut from the European Central Bank, along with a confident performance from new president Mario Draghi, will have helped risk appetite in the otherwise crisis-ridden euro zone.

LONDON (Reuters) – Chaos over Greece’s role in the euro zone battered equity markets and hit the euro on Thursday, swamping any residual support from the U.S. Federal Reserve’s soothing comments less than 24 hours earlier.

The threat of a Greek exit from the euro hung over a meeting of G20 leaders after France and Germany made it clear that Athens must decide urgently whether it wants to stay in the 12-year-old currency bloc.

Greek Prime Minister George Papandreou was under the gun, losing support within his own party, after calling for a referendum which will test his highly-indebted country’s resolve to stay in the currency bloc.

For investors, it has raised the spectre of a disorderly default on Greek debt with the real threat being a spillover into other countries, notably Italy.

“There is massive uncertainty. Is Greece going to come out of the euro?” said Andrea Williams. who manages $2.1 billion in assets for Royal London Asset Management.

“We are trying to avoid exposure to domestic Europe, we were concerned about European growth anyway, but now it is going to be absolutely dreadful. We are trying to avoid anything with over exposure to Italy and Spain.”

World stocks as measured by MSCI were down 0.7 percent with emerging markets falling 1.6 percent.

LONDON (Reuters) – Chaos over Greece’s role in the euro zone battered equity markets and hit the euro on Thursday, swamping any residual support from the U.S. Federal Reserve’s soothing comments less than 24 hours earlier.

The threat of a Greek exit from the euro hung over a meeting of G20 leaders after France and Germany made it clear that Athens must decide urgently whether it wants to stay in the 12-year-old currency bloc.

Greek Prime Minister George Papandreou was under the gun, losing support within his own party, after calling for a referendum which will test his highly-indebted country’s resolve to stay in the currency bloc.

For investors, it has raised the spectre of a disorderly default on Greek debt with the real threat being a spillover into other countries, notably Italy.

“There is massive uncertainty. Is Greece going to come out of the euro?” said Andrea Williams. who manages $2.1 billion (1.3 billion pounds) in assets for Royal London Asset Management.

“We are trying to avoid exposure to domestic Europe, we were concerned about European growth anyway, but now it is going to be absolutely dreadful. We are trying to avoid anything with over exposure to Italy and Spain.”

World stocks as measured by MSCI .MIWD00000PUS were down 0.7 percent with emerging markets falling 1.6 percent.

LONDON, Nov 3 (Reuters) – Chaos over Greece’s role in the euro zone battered equity markets and hit the euro on Thursday, swamping any residual support from the U.S. Federal Reserve’s soothing comments less than 24 hours earlier.

The threat of a Greek exit from the euro hung over a meeting of G20 leaders after France and Germany made it clear that Athens must decide urgently whether it wants to stay in the 12-year-old currency bloc.

Greek Prime Minister George Papandreou was under the gun, losing support within his own party, after calling for a referendum which will test his highly-indebted country’s resolve to stay in the currency bloc.

For investors, it has raised the spectre of a disorderly default on Greek debt with the real threat being a spillover into other countries, notably Italy.

“There is massive uncertainty. Is Greece going to come out of the euro?” said Andrea Williams. who manages $2.1 billion in assets for Royal London Asset Management.

“We are trying to avoid exposure to domestic Europe, we were concerned about European growth anyway, but now it is going to be absolutely dreadful. We are trying to avoid anything with over exposure to Italy and Spain.”

World stocks as measured by MSCI were down 0.7 percent with emerging markets falling 1.6 percent.