Investors consider comeback to eurozone assets
Global investors are considering a return to eurozone stocks and bonds, following the release of a European Central Bank’s bond-buying rescue plan and more credit easing announced by national central banks.
A survey run by Reuters on 61 funds in the United States, continental Europe, Britain and Japan found a selective return to risky assets.
About 62% of the funds surveyed were planning to cut safe-haven German Bunds, following the publication of ECB’s support plans. Meanwhile, euro bond holdings were back to July levels and euro share allocations were at their highest since April.
According to the poll, asset managers considered third-quarter corporate earnings releaseds, uncertainty over the euro, US elections and fiscal cliff among the greatest risks for the future.
Moreover, few investors were confident in long-term success of central bank policy support.
Funds also said that 10% gains in global equities over the third quarter was anticipating policy action announced in September.