Fund managers in the euro zone have targeted US equities in an effort to boost profit, moving out of cash-heavy positions two months after the terror attacks in the United States.

A survey by Merrill Lynch found the number of managers looking to invest in US equities doubled on the previous month, driven by favourable expectations for profits, although they acknowledged that the US is the most expensive region for equities.

Conversely, although euro-zone stocks were seen as cheap by a majority, they were even less sought after than last month.

One good piece of news for the euro zone is that the euro remains the most popular currency over the next 12 months with fund managers, although somewhat less so than in the previous month.

In sectoral terms, telecoms have remained strongly in favour, with energy and car manufacturers out of favour.