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Unexpected separation of monetary policies are central to the American and European


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Questionnaire monthly BofA Merrill Lynch fund managers Unexpected separation of monetary policies are central to the American and European

Source: 

  • New York and London statement
Date:  September 17, 2014
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Note that a report on the results of the questionnaire monthly Bank of America Merrill Lynch to the opinions of fund managers for Sept., restore investors optimistic about the prospects improved performance of European equities in the wake of facilitating the ECB monetary policies Finally, the growing confidence in the inevitability of the Federal Reserve Bank of America raised the prices of its benefits in the spring 2015 next.

Optimism

The report pointed to the start of the restoration of investors' optimism for European equities after expressing deep pessimism Bavagaha in a questionnaire last August. As it is in the wake of the decision of the European Central Bank to reduce interest rates to near zero%, boosted officials allocation of investment assets investment in the shares of the euro zone.

The 18% of those responsible that they have strengthened stake that region in their portfolios, compared with the shares of other regions, an increase of 13% over the past month.

He also stressed 11% of those officials that Europe is the region that want to increase the share of their shares in their portfolios more than any other region over the next twelve months, while 4% were confirmed in the past month their intention to reduce the share of those stocks in their portfolios.

Facilitate

The report pointed out that international investors have come to expect the adoption of the European Central Bank for further proceedings quantitative easing, where the predicted 42% of the investors participating in the survey this month, the adoption of the European Central Bank for a package of procedures for quantitative easing by the end of 2014 the current, up from 32% predicted in last August. In addition, the percentage of investors who are dismissing the bank to approve such procedures from 31% in the past month to 19% in the current month.

In the meantime, grown investors' expectations for tighter Federal Reserve Bank of American monetary policies, as predicted about half of investors (48%) bank raised the prices of its benefits in the second quarter of 2015, the first increase of its kind to those prices in nine years, an increase of 38% for the proportion of such as those who predicted the increase last month. This led to the recording report thus to increase a record 86% increase in investors' expectations of rising exchange rates of the dollar over the euro and the Japanese yen.

Results

Said Michael Hartnett, chief strategist for global investments in the company BofA Merrill Lynch Global Research: «confirms the end of the current month questionnaire coherence between the policies of central banks and the European American.

With the approach of the first approval of an increase in interest rates the Federal Reserve Bank of America since 2006, will be seeing a new surge in the exchange rates of the dollar and Tforeiga remarkable American bond markets.

For his part, said Manish Kabra, European equity analyst and strategic analyst for the quantitative elements of the financial evaluation: «at a time when investors are welcome measures the European Central Bank, the attractiveness of Europe still lacks the element of economic growth.It will need to reflect that growth on the ground through the amendment of the European monetary policy some time, amid the absence of any guarantees that it has already achieved ».

Sentry

Despite the decline in the proportion of cash holdings for investors in their investment portfolios, Sept. questionnaire indicates that they are still trying to explore the prospects of the future unknown. Average was down cash holdings to investors of 5.1% in last August to 4.6% in September current, which is about the levels of last July. But that does not mean that investors flock to take on more risk, where 22% of confirmed officials allocation of investment assets, the share of cash holdings are still higher than the share of all other tools in their investment portfolios (down from 24% in the past month).

Quotas

In contrast, investment allocations recorded a modest increase in stocks, where 47% of the assured investors that they had increased its stake in their investment portfolios during the current month, up 3% from them in the past month. On the other hand, the proportion of asset allocation investment officials who boosted the share of bonds in their portfolios at a rate of 2% to 60%. And witnessed the movement of entry and exit certain sectors, including limited activity amid investigation of materials and energy sectors for greater gains.

Risk

While public opinion polls confirmed the convergence rates of supporters and opponents of Scottish independence has not allowed them to predict the winner in the vote on independence, deepened the negative feelings about the British stock. Thus, increased firmness rating UK regions of the world as a less popular among officials in the allocation of investment assets during the current month, where 16% of them confirmed Tkhveidahm to share the British stock in their portfolios.

Upon monitoring the future prospects for those shares, the report stressed that 14% of investors consider the United Kingdom that they want to reduce the region's share of their portfolios in stocks, more than any other region over the next twelve months. On the other hand, expressed 20% of those investors are pessimistic about the likelihood of higher profits of British companies increase of 12% from last August, but their expectations for the movements of exchange rates of the pound sterling has not seen a noticeable change.

Global economy

Predicted 54% of the global investors the growing strength of the global economy over the next year, painted a similar picture expectations for corporate earnings growth prospects, where 37% of them expect those earnings growth over the next year, down monthly amounted to 2%.

He investors cautious about inviting companies to use their capital to develop its business, where the percentage of those who have fallen and those calls directed by 6% to 56%, while calling for more investors to companies re-surplus cash to shareholders.

 

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