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2026-09-16 14:24:08
[Bank of America Survey: European Stock Market Bullish Reasons Weakening, Global Investors Underweight Eurozone Stocks] (1) European stock market gains have become more concentrated this year, amplifying risks as investors become increasingly pessimistic about the economic outlook. (2) Bank of America strategists Paulina Strzelinska et al. noted in a fund manager survey released Tuesday that “bullish reasons” for Europe are weakening. (3) Global investors are net underweight in Eurozone stocks by 5%, compared to a net overweight of 6% a month ago; in contrast, they are net overweight in US stocks by 25%, not far from the 27% in the previous survey. (4) In addition, a net 8% of investors expect to be underweight in Europe over the next year. (5) 43% of respondents believe that disappointing AI investments are the biggest downside risk; no fund managers listed AI, digital, or data center spending as drivers of European growth. (6) Instead, they are chasing economically relevant sectors such as basic resources, technology, and industry to capture the benefits of the region’s low interest rates and fiscal stimulus. (7) The survey shows that exposure to banks remains high, but has halved from the previous month.
