economy
Investors rip up European boom bets as stagflation fears soar on Iran war oil shock
Bank of America's latest European Fund Manager survey suggests stagflation is now the consensus view for the coming months.
TL;DR
- European fund managers are reducing stock exposure due to the Iran war and oil price surge.
- Fears of flatlining growth and stagflation are prevalent among investors.
- Oil prices have surged following strikes on Iran, disrupting global supply.
- European equities have seen a significant decline in investor confidence.
- Managers are shifting investments from industrial stocks to technology and basic materials.
- Stagflation has become the consensus expectation for the European macro regime.
- Expectations for European core inflation and EU inflation are at their highest levels since 2022.