Bullish investors pile into EM, European stocks in March, BofA survey shows
Reuters
Published Mar 19, 2024 19:13
By Harry Robertson
LONDON (Reuters) - Upbeat investors rushed into emerging market equities in March at the fastest pace since April 2017, and into euro zone stocks at the quickest clip since June 2020, Bank of America (NYSE:BAC)'s fund manager survey on Tuesday showed.
Global growth expectations among the fund managers surveyed by BofA were at a two-year high, with "risk appetite" at the highest since November 2021.
A string of stronger-than-expected U.S. data releases has helped brighten the mood in global stock markets, even if it has made the Federal Reserve less likely to cut interest rates and hurt bond prices. The benchmark U.S. S&P 500 has been trading at all-time highs.
BofA's survey showed that 40% of respondents expect lower bond yields in the next 12 months, down from 62% in December 2023. Inflation was seen as the biggest tail risk for markets, whereas in December a global recession was viewed as the biggest danger.
March saw outflows from U.S. equities, BofA said, particularly from discretionary and tech stocks.
However, the "long Magnificent Seven" - Alphabet (NASDAQ:GOOGL), Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), Meta, Microsoft (NASDAQ:MSFT), Nvidia, and Tesla (NASDAQ:TSLA) - remained the most crowded trade.
Investor optimism was underscored by survey respondents becoming on balance positive about corporate profit growth for the first time since January 2022.
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.