Italian selectors back European stocks to prosper

European equity is the sector Italy-based selectors are most positive on for 2013, narrowly piping emerging market equities to top spot.

A poll carried out at Citywire's Italy event in Lake Garda asked delegates which equity market will perform best over the next 12 months, with 36% of respondents saying they were most positive on European equities.

This compares with 34% who picked emerging markets, with 11% of votes apiece going for US and Asian equities.

Italian selectors' bullish outlook on European and emerging market equities follows another recent poll at the Citywire Switzerland event in Gstaad which showed Swiss selectors were positive on the outlook for the equity sector.

In fixed income, selectors were split over which sector will outperform over the next 12 months with 28% picking emerging market debt. Investment grade corporates and high yield came in joint second place with 26% of the votes each.

Only 5% said they felt confident on the outlook for sovereign debt and the remaining 15% voted for convertible bonds.

Closer to home, a large majority of selectors (68%) felt that Italy's current technocratic rule 'was necesary', showing support for the current prime minister Mario Monti's rule, with 26% regarding it as 'refreshing' and a minority of 6% considering it 'insulting'.

Yet ECB president Mario Draghi convincingly beat Monti in the popularity contest, as 57% of selectors saying they preferred Draghi with only 26% of voters opting for the Italian prime minister.

In answer to which of the following reforms would have the biggest impact on the Italian economy, 48% answered liberalisation,  44% answered labour reform with the remaining 8% opting for pension reform.

On a potential Italian sovereign debt downgrade, 65% of selectors said a downgrade is unlikely whilst 35% said that a notch downwards in the credit rating would be justified.

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