Bank of America (BAFA) reported that the pessimism towards global economic growth has decreased and the soft landing scenario has become a dominant view of investors, but the risks of customs tariffs continue.
Bofa announced the results of the European Fund Managers’ survey.
Accordingly, 46 percent of the respondents think that the global economy will weaken in the next year. This rate was at a record level last month with 59 percent and 82 percent in April.
While the improvement in the predictions of the participants in the questionnaire was effective, the decrease in threats related to tariffs was effective, while the soft landing scenario in the global economy became a dominant view among investors. The rate of soft landing for the global economy increased to 66 percent in the current survey, while the rate of soft landing increased to 66 percent.
Investors see strong consumer expenditures in the United States for global growth as the largest upward factor, the policy composition of the President Donald Trump as the largest downward risk.
Half of the respondents consider a trade war that can trigger a global recession as “the biggest extreme risk”.
Approximately two -thirds of the participants think that tariff shock is not yet largely reflected in prices.
29 percent of the participants for Europe think that growth will be strengthened in the next 12 months, while the expected financial incentives from Germany support optimism for the growth of Europe.
On the other hand, the number of concern about the possible effects of US -based policy risks on Europe is increasing.
29 percent of the participants are waiting for the slowing of inflation in the next year in Europe, and the rate of those who foresee that inflation will accelerate is 13 percent.
34 percent of European fund managers are estimated in the coming months and 75 percent of the European stock exchange will rise in the next 12 months.
Investors maintain their optimism in EU shares, while banking shares and German shares are among the most popular positions.
