Time to up risk as investors call end of eurozone crisis?

European fund managers have rotated out of blue-chip defensives in favour of more economically sensitive cyclical stocks as they call the end of the sovereign debt crisis.

One year on from European Central Bank president Mario Draghi’s pledge to do “whatever it takes” to keep the eurozone together, European equity markets have soared, outpacing the vast majority of global markets. A marked improvement in a number of key economic indicators has calmed European bond markets. For instance, an uptick in exports has increased competitiveness across the continent and boosted investor sentiment. Over the past year, the average fund in the IMA Europe ex UK sector has returned 36.89% according to Morningstar, ahead of other sectors such as IMA UK All Companies, ...