Reuters reports that BoFA's August survey edition said that less than half of respondents in a monthly fund manager survey expect the European economy to further improve over the next twelve months, marking the lowest proportion since last June.

Cooling growth expectations are mainly due to COVID concerns, with 19% of investors citing the Delta variant as the biggest tail risk to the European economy, closely behind inflation risks and worries about a taper tantrum.

As a result, a net 23% of investors were overweight cash, the highest share in a year, BoFA said.