Global Market: BlackRock turns cautious on emerging market stocks, upgrades euro zone bonds
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BII, the research arm of U.S.-based asset manager BlackRock, downgraded its view on emerging market equities to neutral from a small overweight, citing a more balanced risk-reward outlook. However, the institute said selective opportunities remain, particularly in Latin America, where growing investments in artificial intelligence infrastructure are expected to support demand. The institute also lowered its recommendation on emerging market hard-currency debt to neutral from a small overweight. BII believes the asset class has benefited from improving economic fundamentals, but now sees a more compelling risk-reward proposition in local-currency debt. Reflecting that preference, BII upgraded its outlook on emerging market local-currency bonds to a small overweight from neutral. Reuters reported that the institute favoured the segment because of its attractive yield profile relative to volatility, along with improving macroeconomic fundamentals across several emerging economies. In developed markets, BII raised its stance on euro zone government bonds to overweight from neutral, expressing a preference for short- and medium-duration debt. The institute believes financial markets are pricing in an overly restrictive interest-rate environment in the euro zone for an extended period, creating attractive opportunities in government bonds. The changes underscore BlackRock's evolving asset allocation strategy as investors reassess global growth prospects, monetary policy expectations, and the impact of artificial intelligence-driven investment trends across regions. (Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times.) (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
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