Bank of America: Investor expectations that Europe will not fall into recession are at their highest since 2007.

A survey by Bank of America indicates that the decline in energy prices and easing inflation has boosted fund managers' optimism, with most believing that the likelihood of a recession occurring in Europe in the next year is negligible. The research team led by Paulina Stzerlinska and Andreas Brueckner stated that 97% of the surveyed fund managers expect Europe will not experience a recession in the next 12 months, marking the highest rate since 2007. A net 35% of respondents anticipate that the growth rate of the European economy will accelerate in the coming months. Market sentiment remains strong, with a net 53% of respondents believing that European stocks will rise in the next 1-3 months. The survey indicates that investors still expect a 5.7% upside for European stocks over the next year. Furthermore, 47% of respondents expect the European stock market to outperform U.S. stocks in the next 12 months, with upward earnings revisions being the main driving factor behind the market's rise.