Mood to the global economy remains acidic

Dana managers expect inflation to increase over the past year because of the mood to the rough global economy.

More than 40 percent of Dana’s managers believe that the global economy will weaken for the next 12 months, with US economic policies and weaker consumer demands are seen as the biggest force that dragged him down, according to the survey of the latest European Fund managers in the American Bank.

More than a month ago, only 31 percent of global economic thinking would be reduced, but Trump’s tariff policy that was sweeping and uncertain, and their disturbance to the global trade order, had caused acid sentiment.

Now, 58 percent seeing US administrative policies have a negative impact on temporary growth also caused inflation to increase, up from 52 percent last month, reflecting the increase in “stagflation” concerns, a troublesome economic situation where high inflation and unemployment are added with stagnant economic growth.

Hope for inflation rose to 18 percent, the highest since May when the market deal with the impact of the Trump tariff announcement.

The trade war that triggers a global recession remains the biggest risk to cause significant losses in the market for investors, but the greater amount also involves stubborn inflation can frustrate Slash with interest rates by the Federal Reserve in September.

Hope in Europe

While the attitude towards the global market deteriorated, 35 percent of respondents expect to see stronger European growth over the coming year.

Likewise, 23 percent saw the scope of European inflation to decline during that period, showing hope for the market amid global turmoil.

Many believe that the new German fiscal stimulus, which is anticipated to improve its stagnant economy, will be the main driver of the economy and remains the most popular among investors.

Switzerland became increasingly unpopular after Trump slapped the country at a rate of 39 percent.

More than 10 percent believe that the European central bank eases the Euro zone economy will be a major factor in increasing European growth by reducing costs and injecting capital into the bank.

Be bullish

While the fund manager is skeptical of European equity in the short term, believes the tariff shock has not ended, many bullish respondents for long -term potential equity.

Nearly nine out of ten respondents are optimistic in the long run for European equity, with finance it is expected to be the best performing sector, with insurance behind.

On the other hand, respondents believe cars and retail will eventually perform in the market.