Investors are at their most optimistic about European equities for 18 months, but last month's bullish attitude towards the global economy has softened, according to the latest Bank of America-Merrill Lynch fund manager survey.

Only 1% of respondents were investing less than their benchmark allocation to equities in the eurozone, down from 13% last month, according to the survey. The result is the most optimistic assessment of the region since February last year, and represents a substantial improvement in sentiment since a low in March when a net 40% were underweight.