Fear of inflation stresses European stock markets

The fear of a disproportionate increase in prices has become one of the main concerns of analysts and investors. This is conclusively confirmed by the latest survey of Bank of America’s 216 managers. It points to inflation as the greatest danger that threatens the markets.

The fear of inflation has raised the markets’ negative reaction to the withdrawal of stimulus from central banks as the main fear for managers. Today, it threatens to provoke a corrective day in the main stock markets in Europe and the US. The one is already being seen in Asia, where the Nikkei yielded more than 1.5%. The Australian stock market registered one of its worst sessions in recent months. This comes after announcing the publication of a higher-than-expected growth figure in the wage price index released today.

After two sessions of consolidative cut in which the continental stock exchanges steepened, the decreases threaten to prevent overcoming resistance in the most immediate short term. Hence, the upward path cannot be resumed in search of higher targets.

Analysts believe that as long as the EuroStoxx 50 does not manage to overcome the resistance at 4,040 points, we cannot rule out that it continues to consume time. It could end up signing its fifth lateral week before resuming the upward path.

Fund managers leaning towards Europe

Fund managers continue to lean portfolios towards Europe. 38% of respondents have an overweight position in this region; It is the best figure for the eurozone since 2018, and this month it has overtaken emerging markets.

The attractiveness of the US market has continued to decline. Just 6% of respondents have an overweight position in the region at this time. In contrast, the United Kingdom is significantly improving its positioning in portfolios, and for the first time since 2014, the managers surveyed already have an average overweight position.