Global investor confidence in European equities surged in August with allocations reaching their highest levels since the beginning of 2008, after investors reduced their exposure in the previous month.

Optimism over the strength of the eurozone reached a nine-year high in August, according to Bank of America Merrill Lynch's latest fund manager survey, with a net 88% of portfolio managers surveyed saying they expect the economy in the region to improve over the next 12 months.