Barclays capital investor survey finds growing confidence in Euro area for 2011

Press release
Published December 26th, 2010 - 04:01 GMT
Barclays Capital
Barclays Capital

Institutional investors overwhelmingly believe the euro area will be able to avoid a "full-fledged crisis," according to Barclays Capital's inaugural Global Macro Survey. More than 2,000 institutional investors from around the world, including hedge funds, money managers, proprietary trading and corporate trading desks responded to the survey, yielding valuable information on global investor sentiment.

Only 4% of clients surveyed believe that a euro-area crisis and break-up of the euro currency is a likely outcome, and more than 50% of respondents said that the impact of the sovereign debt crisis on the euro over the next quarter will be modest. Despite this, concerns about advanced economy fiscal issues will be the key theme in 2011, according to more than three out of five respondents.

"The results of this survey point to a confidence that fiscal issues in the euro area can be resolved," said Piero Ghezzi, Head of Economics, Emerging Markets and FX Research at Barclays Capital. "Nevertheless, institutional investors are very concerned about how government debt and fiscal policy is handled in advanced economies around the world."

Additional findings of the survey include:

The asset classes of choice in 2011 are equities (40%) and commodities (34%). Fewer than 10% expect US Treasuries to outperform. The U.S. is set to experience a period of below-trend growth, according to 86% of respondents. Less than 6% of investors expect a double-dip recession in the U.S.The overriding theme in EM appears to be growth – 40% of investors in EM believe that the currencies and equity markets likely to outperform are those with strong growth stories regardless of carry and valuation. 

Background Information

Barclays Corporate

With a strong focus on client relationship, Barclays Corporate provides integrated banking solutions to more than 100,000 businesses and organisations with an annual turnover of more than £5m around the globe.

Its clients are served via a network of relationship, industry sector and product specialist managers, who provide local access to tailored solutions constructed from a comprehensive range of products, services and expertise. These include: lending, risk management, trade, cash and liquidity management, and specialist asset and sales financing.

Additionally, clients are offered access to the products and expertise of other businesses in the Group, particularly investment banking through Barclays Capital and private wealth management through Barclays Wealth.

Barclays Corporate employs 13,000 globally.

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