BlackRock upgrades Europe stocks on economic restart, warns of U.S. risks

LONDON - Europe’s efforts to kickstart economies hit by COVID-19 has prompted BlackRock Investment Institute to upgrade its view on European stocks to “overweight”, while warning of a risk that the U.S. policy response could be scaled back too soon.

“The region is exposed to a cyclical upside as the economy restarts, against a backdrop of solid public health measures and a galvanizing policy response,” BlackRock, the world’s largest asset manager, said in its mid-year outlook.This came at the expense of U.S. stocks, for BlackRock reduced exposure to “neutral”, citing risks of fading fiscal stimulus, an extended epidemic and renewed China-U.S. tensions.

“As we look out over the coming 6-12 months, we think there are significant risks around the U.S. retrenching too soon the policy support,” Pyle added.Having slumped 35% from Feb. 20 to March 23, they are now within 10% of February’s record highs thanks to lashings of fiscal stimulus, interest rates reduced to 0% or below in most major economies and massive quantitative easing by central banks.has slipped 6% over the same period.

United States United States Latest News, United States United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

WSJ News Exclusive | U.S. Presses Europe to Uproot Chinese Security-Screening CompanyAmid a global anti-Huawei effort that has seen mixed results, the U.S. sets another Chinese tech company in its crosshairs: Nuctech, a state-controlled firm that is quietly dominating Europe’s cargo and airport screening market. How is it that Chinese tech companies are so ingrained in so many places? And how will we reconcile TenCent and Alibaba? I'm tired of winning. Are you? So it's okay for Washington to use its power to get the contracts instead
Source: WSJ - 🏆 98. / 63 Read more »