Survey: Large investors now believe in European shares – “the best productive stock market this year”

To Europe The portfolio managers of investing funds are increasingly believed that growing economic growth will help the stock market.

According to many portfolio managers, European equities are currently undervalued compared to global control companies.

The number of portfolio managers like this is now at the highest level for six years, says Bank of America’s recent survey. About the study tells Financial Times (FT).

Bank More than 200 portfolio managers participated in the American survey. Of these, 38 % considered European shares being undervalued.

“Many investors expect Europe to be the most productive stock market this year,” Bank researchers said in their report.

Many of the respondents now recommended overweight investments in Europe, while in December the recommendation was underweight.

Europeans The shares have recently done poorly as US technology companies have led the stock hall. In addition, Europe has been faded by poor economic growth in the area.

However, the early part of the year has been favorable for European shares. The Stoxx 600 index of the 600 most significant companies in Europe has risen by almost 10 % since the beginning of the year. At the same time, the world’s most watched stock index, US S&P 500, has risen by only four percent.

The Stoxx 600 index has also clearly washed the FTSE All World index describing the world’s share price development.

Portfolio The wishes for the rise in the price have been raised by the companies’ own earnings expectations and the improvement in price competitiveness due to the weakening of the euro and the relative advantage of shareholders in relation to US shares, Ph.D. said.

Believe in the acceleration of economic growth is currently increased by the potential hopes of getting peace in Ukraine, possible recovery measures in Germany and the views that the European Central Bank continues to reduce the interest rates, the portfolio managers estimate. However, there are numerous uncertainties.