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 ...
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