BofA: European fund managers lower their recession expectations

Near-term EU equity downside

Valeria Martinez
clock • 2 min read

European fund managers have lowered their long-term recession expectations, but continue to see near-term downside for equities in the region due to sticky inflation and further central bank tightening.

According to this month's Bank of America's European fund manager survey, 24% of participants think the global economy will go into a recession over the next twelve months.  This is down from 51% last month and a peak of 77% in November. A net 55% expect a downturn in Europe, down from 75% last month and 95% in October. Investors still believe that the European economy would decline as a result of tightening lending conditions, according to 61% of respondents, but an increasing percentage of investors (33%) expect that growth will be resilient because of savings and order backlogs....

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Europe

Partner Insight: Has the European credit cycle been extended?

Partner Insight: Has the European credit cycle been extended?

Derek Hynes, Fixed Income Portfolio Manager and Will Prentis, Fixed Income Investment Specialist at Wellington Management
clock 21 June 2024 • 4 min read
European Central Bank on track for June rate cut as key inflation metric eases

European Central Bank on track for June rate cut as key inflation metric eases

Services prices decelerate in April

Valeria Martinez
clock 30 April 2024 • 1 min read
FundCalibre's Schooling Latter: The shifting sentiment in Europe

FundCalibre's Schooling Latter: The shifting sentiment in Europe

Portfolio picks

Juliet Schooling Latter
clock 27 March 2024 • 4 min read
Trustpilot