Bank of America Merrill Lynch has become the latest bulge-bracket to turn more bullish on European financials, acknowledging that its new stance goes against consensus in a world still dominated by deeply risk-averse investors.
In a note Tuesday, the US lender said that it had raised banks to 'overweight' from 'neutral' and trimmed the industrial sector to 'neutral', despite the its latest fund manager survey showing that investors are still super cautious on financials.