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Power Play: Europe is a riskier bet than China

Members of public walk past the Bank of England in London, England
Tolga Akmen | Anadolu Agency | Getty Images

With Europe gearing up for the Brexit vote in the UK on June 23, Europe may be a riskier bet for your portfolio than China.

Katie Nixon, chief investment officer of Northern Trust Wealth Management, tells CNBC's "Power Lunch" on Friday she has removed China as a risk case.

"China's economy has stabilized, greatly reducing the risk of a 'hard landing' and bringing renewed confidence in the political leadership. The GDP report released last week reflected an economy growing at 6.7 percent, with positive momentum in retail sales, industrial production, and fixed asset investment that exceeded expectations," Nixon said.

Read More What a Brexit could mean for US banks

While risks have subsided in China, they have increased in Europe. Nixon believes the Brexit vote is now a coin toss and she's concerned about the impact of the UK leaving the European Union.

According to Nixon, "Immediate economic impacts will be felt through the trade channel, as well as through the movement of people. Both are negatives for growth. Further, a Brexit would introduce additional risk to the EU: who would be next?"

The FTSE 100 and the pan-European STOXX 600 closed lower on Friday.