European investors are hanging on to their stocks as a rise in the markets appears imminent
Recent downturns in world markets have produced a boost to European investor sentiment, according to research by Threadneedle Investments.
Threadneedle's figures show that the number of investors intending to sell has fallen and the number intending to hold has risen. The data implies there are no signs of investors wanting to abandon the market entirely.
The Threadneedle Investment Barometer, a regular six-monthly survey of investor opinion conducted in the UK and Germany, found that the proportion of investors uncertain about what action to take concerning stock markets has fallen sharply following the recent price declines. UK investors are, however, more pessimistic than their German counterparts. Sentiment about one year prospects for the global markets is little changed from Threadneedle's previous two surveys, with 47% of Germans expecting a rise compared to 32% of UK investors.
A further 32% of UK investors expect a fall in world markets, which compares to only 19% last year. However, according to the survey, the number of those anticipating a rise in global investment markets has increased to the highest level so far: 50% in the UK and 64% in Germany.
The survey found that UK investors who foresee an increase are looking for 13% while German investors expect a move up of 22.7%.
In both countries, those expecting a fall in global markets predicted that an 11% decline was on the cards.
David Sachon, retail managing director at Threadneedle Investments, said: 'This research shows that investors have been behaving very rationally. There are no signs of panic but clearly markets have been volatile and this has made people a little less keen to invest short-term.'
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