European investors see hawkish central banks as greatest threat to equities

Coronavirus threat fading

European investors see hawkish central banks, rather than coronavirus, as the largest risk to equities in 2022, according to research from the Bank of America.

BofA's latest European Fund Manager Survey found that 44% of investors chose monetary policy tightening as their main concern for equities, up from 22% in November. The share most concerned about the pandemic dropped to single digits, from 15% in December to just 6% today. The net proportion of investors regarding monetary policy as too stimulative reached a 20 year high of 69% globally, while for Europe it rose to 56%. Despite this, 80% of respondents expect equities within the European Union to rise by at least 5-10% in 2022. Meanwhile, inflation concerns are fading, with 21% of inv...