MILAN (Reuters) – Global investor optimism scored the biggest jump since June 2020 in October due to Federal Reserve rate cuts, expectations of stimulus from China and of a soft landing for the U.S. economy, a BofA survey of fund mangers published on Tuesday showed.

Cash allocations dropped to 3.9% from 4.2% in September month, while equity allocations rose to a net 31% overweight, and bond allocations suffered a record drop to a net 15% underweight, according to the survey.

BofA said investors expect the upcoming U.S. election will most likely impact trade policy (47%), followed by geopolitics (15%) and taxation (11%).

(Reporting by Danilo Masoni; Editing by Amanda Cooper)