China due a correction, argues Bokobza of SocGen

A global economic slowdown is on the horizon, but while the US and Europe appear to be at the forefront of this, China is due for a correction too, says Alain Bokobza, head of global asset allocation at Societe Generale.

"A global slowdown [will] not necessarily be a big recession or a long-lasting recession, if that will come," says the Paris-based analyst. "Our economics team say [there is] a 40% probability of a mild recession in the US."

He notes that the US Federal Reserve is prepared to provide "very ample liquidity to the banking sector" in the form of cheap capital, which will help to buoy US lenders.

Meanwhile, the sovereign debt crisis in Europe, another global economic flash point, is also fueling fears of a global recession.