Investors ditch defensive stance

Investors ditch defensive stance

CONTINENTAL EUROPEAN investors have ditched their defensive stance of the past six months and raised holdings of international stocks amid hopes of a worldwide economic recovery, a survey by Merrill Lynch will reveal today.

According to the US bank, in February European fund managers doubled their investments in Japanese equities from 2 to 4 per cent of their portfolio. The prospect of further UK rate cuts also triggered an increase in the level of holdings in London-quoted companies.