A Bank of America survey reveals global growth expectations have surged to their highest level since 2021. A net 38% of European fund managers predict a stronger economy over the next year, up sharply from 18% in December. The primary driver is optimism about a resilient U.S. consumer and slowing inflation.

This bullish sentiment is tempered by significant risks. President Trump's tariff threats against European nations could reignite trade tensions. Meanwhile, China's economy remains a concern, with nearly half of respondents expecting it to 'flatline' this year despite potential stimulus measures. The outlook hinges on a delicate balance.

Investors are positioning accordingly, increasing overweight stakes in European equities, particularly in the region's industrial and banking sectors. Germany is the most favored country. The survey also points to a potential 'no landing' scenario, where growth remains robust despite central bank rate hikes, a view nearly half of investors now hold.