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Investors' optimism over the global economic recovery and corporate profits has been dented though asset allocators have increased their allocations towards global emerging market equities, says a survey.Also Read: Fed won't slow easing any time soon, thanks to Congress According to the BofA Merrill Lynch fund manager survey for October, investors are concerned that global economic recovery could falter, while emerging market confidence have started to rebuild. As per the survey, in October, only 54 percent of investors believed that the global economy will strengthen, while, in September the figure touched as high as 69 percent. A net 71 percent expect the economic growth to remain "below trend" in the coming 12 months' time, up from a net 61 percent a month ago. It should be noted that the survey was done from October 4 to October 10 - the crucial period when the US economy was going through "shutdown" that ended on Wednesday. "Events in Washington clearly caused investors to shift back towards their benchmarks, but asset price gains can still be driven by high cash levels," BofA Merrill Lynch Global Research chief investment strategist Michael Hartnett said. The report further said that "investors and asset allocators have increased allocations towards global emerging market equities and have indicated in October's survey that they see value in the region." A net 38 percent of the global respondents said that emerging markets equities are the most undervalued of all the regions - in contrast, a net 63 percent said the US is the most overvalued region. Moreover, the number of investors who plan to reduce their holding in emerging markets continued to fall, it added. Expectations for a recovery in corporate profits globally have also fallen. Last month, a net 41 percent said they expected corporate profits worldwide to improve in the following 12 months - that figure has tumbled to a net 28 percent in October. Moreover, a net 18 percent believe that corporate profit margins will decrease in the coming year, up from a net 11 percent a month ago. Meanwhile, however, investors sentiment towards Europe has improved and equity allocation to the region reached a six-year high. "Global investors' outlook for European corporate profits has continued to rise uninterrupted by events in Washington. It is now at its most positive level since September 2007," the survey said. A total of 235 panelists with USD 643 billion of assets under management participated in the survey from 4 October to 10 October 2013.

Malaysia: Political foes unite, denounce 'cruel' MH17 attack

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Malaysia: Political foes unite, denounce 'cruel' MH17 attack

Kuala Lumpur: Malaysia's bitterly divided political forces put aside their differences on Wednesday to denounce the attack on flight MH17 as a heinous international crime and call jointly for swift ju...


S-Korean President Geun-Hye calls Modi, hopes to expand ties

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S-Korean President Geun-Hye calls Modi, hopes to expand ties

New Delhi: Prime Minister Narendra Modi on Wednesday spoke to Korean President Park Geun-Hye, who called and expressed confidence that the Strategic Partnership between India and Korea will expand in ...

Bihar: Maoists blow up rail track, pilot engine of Rajdhani derailed

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Bihar: Maoists blow up rail track, pilot engine of Rajdhani derailed

Aurangabad (Bihar): Maoists blasted a portion of a railway track between Ismailpur and Rafiganj section in Bihar, leading to derailment of a pilot engine running ahead of the Bhubaneshwar-New Delhi Ra...

Russia struggling with half million refugees who fled Ukraine fighting

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Russia struggling with half million refugees who fled Ukraine fighting

Moscow: Russia is struggling with a flood of refugees who already number half a million from the fighting in eastern Ukraine, and many appear increasingly likely to stay, officials and activists said....

Typhoon Matmo batters Taiwan, nine hurt

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Typhoon Matmo batters Taiwan, nine hurt

Taipei: Typhoon Matmo pounded Taiwan with fierce winds and downpours on Wednesday, leaving nine people injured, shuttering financial markets, and interrupting rail and air transportation.Matmo, packin...

Jharkhand: Top Naxal commander killed in encounter

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Jharkhand: Top Naxal commander killed in encounter

Ranchi, Jharkhand: In a pre-dawn operation, security forces today killed a prominent Naxal commander operating in Jharkhand in the forests of Khunti district of the state. According to preliminary inf...

Badaun gangrape: Victim was in touch with accused, claims CBI

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Badaun gangrape: Victim was in touch with accused, claims CBI

The Badaun gangrape case, in which two teen sisters were gangraped and hanged on tree, has a new twist according to the latest CBI investigations.A Hindustan Times report quotes CBI sources as saying ...