Story perspectives

European Fund Managers Optimistic Amid Easing Inflation Fears

9/20/2025

Summary

Story summary

European fund managers express optimism about equities, driven by easing inflation fears and central bank support.
A Bank of America survey reveals 67% anticipate a soft economic landing, while only 16% foresee a global recession.
Concerns over stagflation have dropped from 58% to 41%.
Political instability in France complicates fiscal consolidation and budget planning, leading to declining investor preference.
Overall, European investors remain cautiously constructive as year-end approaches.

History

Historical Context

The European Central Bank initiated the Outright Monetary Transactions program in 2012 to address the eurozone debt crisis, significantly lowering borrowing costs for countries like Spain and Italy. This intervention restored investor confidence, contributing to a shift in fund managers' optimism, with only 41% now concerned about stagflation, down from 58% a decade ago, despite ongoing political instability in France.

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Story summary

European fund managers express optimism about equities, driven by easing inflation fears and central bank support.
A Bank of America survey reveals 67% anticipate a soft economic landing, while only 16% foresee a global recession.
Concerns over stagflation have dropped from 58% to 41%.
Political instability in France complicates fiscal consolidation and budget planning, leading to declining investor preference.
Overall, European investors remain cautiously constructive as year-end approaches.

1 / 2