ECB QE should continue to boost European stocks

The Federal Reserve is likely to raise short-term interest rates later this year and earnings growth may be scarcer if oil prices remain low. 

Earnings expectations are being reset, as low oil prices have caused many companies to reduce planned capital expenditures.

The S&P 500 index rose 5.75% in February, more than reversing January's decline

BofA Merrill Lynch notes in a report on Tuesday:

• We continue to favor equities over bonds, as we expect global growth to pick up and the Fed to begin raising rates later this year. But we are now tilting a bit from US equities to Europe. 
  
  
• US indexes are near our target levels, and we believe that the monetary stimulus from the European Central Bank (ECB) is likely to boost economic growth and equity markets. 
  
  
• We also like the equity markets in Japan, China, and India, because of policy stimulus and reasons largely unique to each country.