London stocks most favoured by European money managers

London stocks are the most sought after on the Continent, boosted by the City’s heavy weighting toward “old-economy” shares.

European money managers are planning on snapping up UK equities, according to a survey published today by Bank of America.

The FTSE 100 is heavily geared toward oil and mining companies, known as “old-economy” shares for their integral role in generating goods and services using legacy methods of production.

There had been fears that Brexit would knock the attractiveness of British shares. 

However, an expected commodities super-cycle driven by countries pursuing net-zero targets has boosted sentiment toward industrial firms.

Russia’s war in Ukraine has also sent energy prices soaring, widening commodity giants’ margins.

Fund managers are dour on the trajectory of the European economy as a historic inflation crunch hits the living standards of households across the bloc.

“Investors continue to cut their European growth projections, with a net 81 per cent of respondents expecting the European economy to weaken over the coming year, up from 69 per cent last month and the highest share since 2011,” Bank of America said.

Over seven in 10 fund managers expect the global economy to slow, the largest proportion recorded since records began in 1994.