European style cycle in ’Recovery’ phase for record 16 months: BofA

Published 19/06/2025, 11:14
© Reuters.

Investing.com -- The European Composite Macro (BCBA:BMAm) Indicator (CMI) increased over the month, keeping the Style Cycle in the ’Recovery’ phase for the 16th consecutive month, marking the longest such period on record, according to Bank of America.

The current ’Recovery’ phase favors Value over Growth stocks, Rising Momentum, Low Quality, High Risk and Small-Mid over Large caps. Top versus Bottom ’Recovery’ stocks gained 4.5% last month, BofA reports.

Half of the CMI inputs improved during the period, with the German IFO index showing the largest increase, followed by the 12-month change in European 10-year bond yield and European GDP forecasts. European PPI inflation declined the most among negative indicators.

Europe-focused equity funds recorded a net inflow of $3.21 billion over the past four weeks, with passive funds attracting $5.98 billion while active funds experienced outflows of $2.76 billion.

Size stocks ($2.87 billion), Industrials ($1.54 billion) and Switzerland ($0.26 billion) saw the biggest inflows, while the UK ($2.66 billion), Quality stocks ($0.44 billion) and Financials ($0.07 billion) experienced the largest outflows.

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