BofA: European fund managers lower their recession expectations

Near-term EU equity downside

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....