Draghi’s bond buying sparks EU shares rush
FUND managers are shunning US shares in favour of Eurozone stocks in the wake of the European Central Bank’s (ECB) massive bond buying programme, a poll showed yesterday.
Allocations to listed stocks in the Eurozone rose to its second highest level ever this month, according to Bank of America’s fund manager survey, threatening to breach its 2007 high. The intention to own Eurozone stocks is also at its highest since 2001, the poll found.
ECB president Mario Draghi pleased markets last month when he announced a €1.1 trillion EU bond buying programme.
But US stock are suffering as a result, with fund managers reducing their positions. Just six per cent had net overweight positions, down from 24 per cent last month. The survey polled 196 managers responsible for investing around $560bn (£364bn).