US News

Investors turning more bearish on global economy – BoFA survey



© Reuters. FILE PHOTO: A trader works on the trading floor at the New York Stock Exchange (NYSE) in Manhattan, New York City, U.S., August 9, 2021. REUTERS/Andrew Kelly

LONDON (Reuters) – Barely a tenth of respondents in a monthly fund manager survey expect a stronger global economy in the coming months, marking the lowest proportion since last April’s initial COVID-19 panic, BoFA’s September edition of the survey showed.

Economic growth expectations are now at a net 13%, the lowest since April 2020 and markedly down from a 91% peak in March this year. The spread of the Delta variant was cited as the reason for the pessimism, the popular monthly survey said.

Nevertheless, 84% of investors now expect the U.S. Federal Reserve to start reeling in its stimulus measures by the end of the year, though expectations for the first U.S. rate hike were pushed out to February 2023 from November 2022 previously.

Despite the growing caution on the macro- outlook, investor positioning in asset markets remains bullish. Equity market protection designed to shield portfolios against a sharp drop in asset values was at the lowest levels since January 2008.

Global liquidity conditions were widely seen as the best since just before the global financial crisis hit world markets in July 2007. Almost 60% of respondents in the survey said monetary policy was “too simulative” which was the highest proportion since May 2011.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

See also  Exclusive: ECB governors agreed to look through euro rise - sources

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





READ SOURCE

Leave a Reply