Are asset allocators set for a stampede into Europe?

EUROPE

Natalie Kenway
clock

Investors have tentatively started to add to their European equity positions following an 18-month hiatus, after the European Central Bank's actions lessened concerns the euro will fall apart.

Multi-managers and wealth managers have begun to dip their toes back into the beleaguered continent and are reducing underweight positions on fears they could miss out on a stampede back into the asset class.  In early September, ECB president Mario Draghi outlined plans to buy unlimited amounts of eurozone nations’ short-dated debt through outright monetary transactions (OMTs). Markets had already begun to price in a positive announcement, following the president’s pledge to do “whatever it takes” to save the single currency in July, and fund managers have done their best to capture ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

Five years on from Covid: What's next for markets?

Five years on from Covid: What's next for markets?

It is now five years since the start of the UK’s Covid lockdown. Since then, we have seen considerable market and geopolitical-related change. Here, William Marshall looks back over the past five years and also explores what we might expect from markets...

William Marshall
clock 06 May 2025 • 4 min read
Gilt yields fall after Donald Trump backs down in 'tariff war'

Gilt yields fall after Donald Trump backs down in 'tariff war'

US president pauses most additional tariffs

Jonathan Stapleton
clock 10 April 2025 • 2 min read
Reeves defends yearly Budget to avoid 'constant chopping and changing'

Reeves defends yearly Budget to avoid 'constant chopping and changing'

Treasury Committee scrutinises chancellor on Spring Statement

Isabel Baxter
clock 02 April 2025 • 3 min read