(BFM Bourse) – According to a study by the US bank, nearly 60% of fund managers see European stocks rallying over the next 12 months. France has become the favorite European country for managers.
A recession is looming for the European Union (and the United Kingdom). Recalling last week when it published its economic forecasts, the European Commission said, Expect a contraction in activity this winter.
Are investors moving away from European markets? Not really if the study’s conclusions are to be believed
It was released on Tuesday by Bank of America in which the bank conducted a survey of fund managers.
Thus, nearly six out of ten investors surveyed (59%) see additional upside potential for European stocks over the next twelve months, the highest percentage in six months, as determined by the US bank. This ratio is broken down as follows: 50% of respondents expect an increase in the stock between 1% and 9% over the next twelve months, and 9% expect more than 10%. […] Managers also prefer French stocks. When asked which companies in which countries they would like to increase their assets, the French come out on top. France has become the preferred stock market in Europe, followed by Spain and Switzerland while Germany and Italy remain the least favourites, “summarizes the Bank of America. The latest good news for the Paris Stock Exchange, which, According to a tally stopped by Bloomberg on Monday,
It recently overtook London in terms of dollar market value. a gathering
It is indefensible [des investisseurs] Returning to Europe’s share [des valeurs européennes, NDLR] who see a significant drop in earnings per share
In response to slowing growth and increasing pressure on margins, margins are fading to 37% from 48% last month.
Likewise, the share of managers who judge that the European economy will experience economic weakness over the next year, if it remains relatively high, fell to 78% from 92% in the previous month. While managers remain positive about European equity markets over the medium term, short-term risks remain. And therefore 80% of them consider it a hadith gathering
The stock market performance seen in European equities is unsustainable in the short term.
Moreover, the overwhelming majority of them (76%) believe that “demand destruction” will be the main theme of the market in the coming months. And 83% of them see inflation falling in Europe, compared to 68% last month.
At the sectoral level, the most attractive divisions for managers are, in descending order, insurance, energy, health and banking. Conversely, real estate comes at the bottom of the pack, followed by trade, construction and automobiles.
The Bank of America study was conducted with a panel of 272 participating funds with a total value of $790 billion in assets under management. 161 respondents answered regional questions regarding assets with a total value of 333 billion in assets under management. The survey was conducted November 4-10. Julien Marion – © 2022 BFM Bourse