Bank of America survey: Over 85% of European fund managers are bullish on the European stock market.

According to its December survey of European fund managers, Bank of America Merrill Lynch stated that more than 85% of European fund managers expect European stock markets to rise in the short term. Investors anticipate that better-than-expected earnings will drive European stock markets higher, with 95% of respondents expecting European stock markets to rise in the next 12 months. The survey showed that a net one-third of fund managers believe that European stock markets are undervalued - a level close to a five-year high and higher than the 23% from the previous month. The percentage of fund managers holding cash decreased, with the cash level of the interviewed fund managers at 2.8%, reaching a 12-year low.