Fund managers are keener to invest in European equities than at any other time in the last eight years, according to research from Bank of America Merrill Lynch, as government efforts to bolster the financial sector help the region to emerge "phoenix-like from the ashes" of the crisis.

A net 30% of global portfolio managers believe eurozone equities are undervalued relative to other regions, the highest reading since April 2001, according to Bank of America Merrill Lynch's latest monthly survey of global fund managers.