|
Extreme reaction on re evaluation of EU and China risk
Investors are positioning themselves for halts in both Europe and China’s economic recovery, according to the BofA Merrill Lynch Survey of Fund Managers for February. Investors have scaled back their growth expectations, retreated into cash and are increasingly skeptical that the European Central Bank (ECB) will increase interest rates in 2010. The panel was responding to questions against a backdrop of economic crisis in peripheral eurozone countries and concerns over monetary tightening in China. World equity markets fell by 8.9 percent during the survey period. The proportion of European investors expecting the region’s economy to grow in the coming 12 months has fallen to 51 percent from 74 percent in January, and...
|