Italy least popular European market
Italy has replaced the UK as the least popular market in Europe for fund managers, according to Bank of America Merrill Lynch (BofAML).
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Italy has replaced the UK as the least popular market in Europe for fund managers, according to Bank of America Merrill Lynch (BofAML).
A shift in Italian fiscal policy could have an impact on the European Central Bank’s plan to end its asset buying programme in September, say fund managers.
Spain’s government collapsed last week and Pedro Sánchez replaced Mariano Rajoy as prime minister but unlike the political turmoil in Italy, Spanish bond markets have been unruffled.
British equities may benefit from political turmoil in Spain and Italy despite Brexit concerns.
The global bond market sell-off this week sparked by the political crisis in Italy may create buy opportunities in Spanish and Portuguese debt.
Italy’s political drama and subsequent bond sell-off has moved a leading fund selector to reduce their Italian investments to zero.
The movement of Italian government bond spreads will depend on who will be the next finance minister, and future volatility will depend on whether the new government’s decisions diverge from the European Union, according to a top fund selector.
The Iberian country has undergone a turnaround in fortunes since the European debt crisis.
With bond yields still at record lows, the ECB planning to pull back its QE programme, and the US slowly rising interest rates, Expert Investor asked investment experts where they found opportunity at its Pan-European Rome Congress.
Many fund selectors believe clients often end up damaging their own portfolios when insisting on bad investment ideas, according to a survey conducted at Expert Investor’s Pan-European Congress in Rome on Thursday.
Strong gains in US equity markets over the past year have encouraged investors to target the asset class in 2018, but while most prefer large cap funds it’s the small caps that have generated the better returns.
The market reaction following the success of Italy’s populist parties at Sunday’s general election will depend on how diluted their stance will be going forward on fiscal easing and being anti-Europe, according to experts.