Investors have returned from holidays with a defensive mindset but fresh hopes are emerging about China’s economic prospects, according to the BofA Merrill Lynch Survey of Fund Managers for September.
Sentiment over the Chinese economy has swung from significantly bearish to bullish in just one month. Eleven percent of respondents believe that the Chinese economy will strengthen over the next 12 months – a 30 percent swing and the largest positive monthly change since May 2009. In August 19% said that China’s economy would weaken. In July, 39% were bearish over China.
“Despite subdued risk appetite, two thirds of investors view European equities as cheap, the highest reading since February 2003. This offers scope for a rally should economic news improve,” said Gary Baker, head of European equities strategy at BofA Merrill Lynch Research.
A report by broking group Marsh examines the repercussions from the administration of the South Korean company, which filed for bankruptcy protection at the end of August.
Global research by C2FO suggests that smaller businesses are less concerned with the repercussions of Brexit and the upcoming US presidential election.
A squeeze on skilled talent means it now takes an average of seven weeks to fill open permanent roles in finance in the UK according to new research from financial services recruitment firm Robert Half.
Early-stage merger and acquisition deals in Asia-Pacific show nearly 10% year-on-year growth in recent months.