Eurozone equities see surge in popularity

EU-Euro-Europe-Eurozone-700x450.jpgEurozone equities have seen a surge in popularity over the past year, with investor sentiment to the asset class up 35.71 percentage points on the back of strong performance.

The Lloyds Bank Investor Sentiment Index shows Eurozone equities have outperformed by 25.5 per cent over 12 months.

In July 2016 net sentiment to Eurozone equities was at -48.27 per cent compared to -12.56 per cent in July 2017.

Gold remains the most popular asset class with net sentiment of 36.34 per cent, despite confidence in the commodity falling 17.24 percentage points over the past year. However Lloyds Private Banking CIO Markus Stadlmann says this decline could continue.

“The fall in sentiment towards gold is not overly surprising,” Stadlmann says. “We anticipate that it will struggle over the next year, dented by rising interest rates after inflation and a strengthening US dollar.”

Overall investor sentiment dropped to its lowest level this year in July, falling 6.29 per cent to 2.59 per cent. However, overall sentiment is up 7.34 percentage points since July last year when it hit record lows following the EU referendum.