Investors flee Japan and US for Europe and emerging markets

Bearish sentiment among investors about the outlook for the global economy and corporate earnings has eased, according to the Bank of America Merrill Lynch fund manager survey for August. However, sentiment on Japan and the US has further worsened, while that on China and Europe has rebounded somewhat. A net 5% of respondents say the global economy will improve in the next 12 months, a turnaround from July, when a net 12% predicted that the world economy would deteriorate. Sentiment o…