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STOCKS NEWS EUROPE-Credit Suisse advises less risk in near term

Credit Suisse remains overweight on equities but believes investors should be modestly reducing their risk in the near term, highlighting fears about a correction in global equity markets.

"We are worried about event risk in the next six weeks," a Credit Suisse analyst says in a note.

"European risks are re-emerging."

The prospect of German backtracking on ESM-funding agreed in June, the postponed release of Greek bailout funds until the U.S. elections and Spanish regional elections in Catalonia are cited by Credit Suisse analysts as cause for concern.

Beyond Europe, Credit Suisse see a correction in equity as overdue.

"This has been the fourth longest S&P rally without a 5 percent correction since 2002," the analyst notes.

Reuters messaging rm://alistair.smout.thomsonreuters.com@reuters.net

Keywords: MARKETS EUROPE STOCKSNEWS (EQUITY STRATEGY CREDIT