Nearly all European fund managers see more upside for EU stocks: survey

European fund managers have turned markedly more bullish on European equities, with Bank of America’s survey showing a net 91% expecting upside over the next 12 months, up from 71% last month. Expected return rose to 6.3% from 5.2%. Near-term sentiment also improved sharply, and investors now favor a “Goldilocks” backdrop of stronger growth and easing inflation. The survey highlights better growth expectations, support from fiscal expansion, and increased appetite for cyclicals over defensives. Banks are the biggest consensus overweight, while autos remain the most underweight sector. Germany is the preferred country market, whereas France is least favored. For markets, the report signals stronger positioning toward European risk assets, especially financials and cyclicals, though the U.K. remains a notable underweight and inflation/central-bank hawkishness remain key correction risks.