UK equity has slipped further out of favour with European fund managers in August with 50 per cent anticipating they will be underweight in the region for the next 12 months, more than double the number who anticipate they will be underweight in Italy.
In contrast 53 per cent expect to be overweight in Germany, according to the Bank of America Merrill Lynch monthly fund manager survey.
The percentage of fund managers anticipating they will be underweight in Italian equities has more than halved between July and August to 20 per cent.
France and Switzerland, which were both listed as overweight positions for the next 12 months in July, are now both underweight.
Sweden then Spain follow Germany as the countries in which fund managers anticipate the largest overweight positions.
The risk of Donald Trump taking out the US presidential elections in November is almost deemed as much of a risk as EU disintegration, with both listed as the biggest tail risk by more than a fifth of fund managers. The next most popular concerns were Chinese deflation and US inflation.
Global reacceleration is viewed as the most important source of Eurozone economic growth by 35 per cent of fund managers, followed by 29 per cent who believe it will come from a renewed programme of stimulus.