⌛ Did you miss ProPicks’ 13% gains in May? Subscribe now & catch June’s top AI-picked stocks early.Unlock Stocks

Europe Fund Manager Survey sees optimism for economic strength

EditorAhmed Abdulazez Abdulkadir
Published 17/04/2024, 02:50 am

On Tuesday, the latest Europe Fund Manager Survey conducted by Bank of America (NYSE:BAC) revealed a significant shift in sentiment regarding the European economy.

A net 50% of respondents now expect a stronger European economy over the next twelve months, marking a substantial increase from the net 21% who held this view last month. This level of optimism has not been observed since July 2021.

Despite the growing optimism, a plurality of 36% of the survey participants still anticipate that European growth will decelerate in the near term due to the impact of monetary tightening. However, this figure represents a sharp decline from the 83% who believed this in January. Additionally, a net 57% of respondents consider the current monetary policy in Europe to be overly restrictive, which is the highest percentage since 2008.

In contrast to their European outlook, fund managers have mixed expectations for the US economy. Half of the respondents expect US growth to remain robust, supported by a resilient consumer sector. Nevertheless, 26% of the survey participants predict that US growth will diminish in response to tight monetary policy.

The survey also highlighted changing expectations for the global economy. Currently, 54% of fund managers believe that a soft landing is the most probable scenario for the global economy, down from 62% who thought the same last month.

Meanwhile, the proportion of those in the 'no-landing' camp, which suggests a more turbulent economic scenario, has risen to 36% from 23% in the previous month.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.