Fund managers’ allocations to euro zone equities have hit pre-crisis levels, amid a rapid shift in sentiment towards the region, according to a survey by Bank of America (BofA) Merrill Lynch.
The bank’s fund manager survey for September revealed that investors’ bullishness towards Europe had offset a continuing sell-off of emerging markets, which have been slammed by uncertainty over the tapering of the U.S. Federal Reserves’ stimulus program.
According to the report, published on Tuesday, allocations to euro zone stocks reached their highest level in September since May 2007. Some 36 percent of global asset allocators were overweight Europe — more than twice August’s 17 percent.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.