Managers signal warning over European markets


first_imgEuro-zone equities have “struggled” relative to US equities, BoAML added. Average allocations to Europe have reduced slightly since May, but the researchers said they remained positive in the short term on the region, citing the economic backdrop and expected free cash flow growth.A majority of those surveyed (42%) said that the Fed’s planned reduction of its quantitative easing programme this year would be a “non-event”. Roughly a third (31%) said it would send bond yields up and stock prices down.“Yet until 10-year Treasury yields climb the wall of 3%, few investors think Treasuries will cause an equity bear market,” BoAML’s researchers said.The survey also showed that the sample of 179 managers had their highest net underweight position in US stocks since January 2008. The UK was managers’ biggest underweight relative to the survey’s history.During June, US tech stocks were among the most sold sector: 68% of respondents said US and global internet stocks were “expensive”. A further 12% said the sector was “bubble-like”.Since 2009, technology has been the most popular sector in 80% of BoAML’s surveys, the company said.Managers held an average 4.9% in cash, the research showed, down slightly from 5% in June’s survey. A quarter of those holding higher cash levels said they were doing so because of “bearish views on markets”. The European Central Bank (ECB) is the most likely trigger of a selloff, according to a leading survey of fund managers.Managers told Bank of America Merrill Lynch’s (BoAML) monthly sentiment and positioning survey that the risk of a policy mistake from the US Federal Reserve or the ECB was the second biggest tail risk, after a bond market crash.In addition, respondents said euro-zone equities and EU and US credit were among the most crowded trades, which BoAML said meant the ECB was the “most likely central bank to spark global ‘risk-off’” scenario.BoAML’s researchers said: “The persistent overweight in euro-zone versus US equities could be more bad news for European investors. The three-month average for allocation [to Europe] is above 50% and, at 57%, is a record high. This is often a contrarian signal.”last_img read more

Florentino Perez praised Zidane on winning LaLiga Title


first_imgMADRID: Real Madrid President Florentino Perez has hailed his players and coach Zinedine Zidane after they wrapped up the 2019-20LaLiga title.”We really wanted to win this league title and that is what we have done,” Perez told Spanish television network Movistar. “They have all put in enormous performances, especially Karim Benzema, Thibaut Courtois and Casemiro, while Sergio Ramos is more than a captain. They have all built a brilliant team spirit while Zidane is the architect of this title win as he has put the players to work. We are so pleased.” Earlier, Zidane had stated that he is feeling like the happiest person in the world at the moment. “It’s huge. It’s a constant battle. There are 38 games, and only at the end can you achieve something great like today. I’m extremely thankful to the players, first and foremost, because they’re the ones fighting out on the pitch,” Zidane was quoted as saying at the post-match presser by the club’s official website. “I have my role and I’m with them, but it’s a team effort. This is a huge achievement, it’s incredibly emotional. It’s very tough to win the Spanish league, very tough indeed. “There are people who say that happiness makes no noise, but I’m the happiest person in the world on the inside right now. Many thanks to everyone for the support,” he added. IANS Also Watch: Truck Catches Fire in Nagaon; Locals Suspect Foul Playlast_img read more