Almost three-quarters of fund managers expect equity markets to be higher in a year's time and one in six expect double-digit growth over the next 12 months, according to Merrill Lynch's latest survey.

The survey, of 301 institutional investors with a combined $1 trillion (€811bn) in assets under management, also showed a consensus that bond yields will rise. Of the respondents to the survey 85% believe short and long-term rates will go up over the next year.