Fund managers turn bullish despite China fears

Global fund managers have become significantly more confident on the outlook for growth, according to a survey by Bank of America Merrill Lynch.

A net 72% of the 180 managers surveyed (who together run $516bn of assets) now expect the world's economy to pick up over the next 12 months - the survey's strongest reading in nearly four years and up 20% from July's figure. Over half of respondents identified the hard landing in China as the biggest tail risk, although a net 32% of managers expect China's economic growth to be weaker, an improvement from a net 65% last month. European managers have also become more bullish. A total of 88% of managers now anticipate the region strengthening in the year ahead, twice the level recorded...