BlackRock upgrades outlook for emerging market stocks
- Donald Trump Sworn in as 45th U.S. President
- Wall Street ends higher as Trump becomes president
- Walgreens Boots Alliance (WBA) Said to Face Antitrust Concern for Rite Aid (RAD) Fix - Bloomberg
- Bristol-Myers Squibb (BMY) Says It Won't Pursue Accelerated U.S. Regulatory Pathway for Opdivo Plus Yervoy in Lung Cancer
- Apple (AAPL) Sues Qualcomm (QCOM) Over Patent Royalties in Antitrust Case - Bloomberg
The BlackRock logo is seen outside of its offices in New York January 18, 2012. B REUTERS/Shannon Stapleton/File Photo
Get daily under-the-radar research with StreetInsider.com's Stealth Growth Insider Get your 2-Wk Free Trial here.
By Trevor Hunnicutt
NEW YORK (Reuters) - BlackRock Inc (NYSE: BLK) said on Monday it is upgrading its view on emerging market stocks, adding that the equities will continue thriving as central banks keep interest rates low.
Rates globally remaining "lower for longer" keeps the risk of the U.S. dollar rising slim, while increasing the likelihood of more rate cuts by emerging market central banks, Richard Turnill, global chief investment strategist for the world's largest asset manager, said in a note.
That combination makes assets in emerging markets relatively attractive, he said.
Meanwhile, investors have been pumping billions into funds tracking that market. Emerging-market stock funds in the United States took in $2.7 billion in the weekly period through Aug. 17, according to Thomson Reuters Lipper data, their seventh straight week reeling in cash.
"We see room for further inflows," said Turnill.
BlackRock had been reluctant to raise its forecast on stocks in countries such as China and India, keeping its view "neutral" on the market for the better part of this year even as it said pressures were easing on developing countries.
But Monday's note upgraded emerging market stocks to "overweight." That shows that BlackRock expects the equities to do well, in U.S. dollar terms, over the next three months.
Turnill said BlackRock prefers investments in "countries showing economic improvements or having clear reform catalysts," citing India and the "ASEAN" grouping of countries in Southeast Asia.
New York-based BlackRock has already been "overweight" emerging-market debt since July.
(Reporting by Trevor Hunnicutt; Editing by Paul Simao and Jonathan Oatis)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- M&T Bank (MTB) PT Raised to $165 at FBR Capital Following 4Q Beat
- Union Pacific (UNP) PT Raised to $120 at Aegis Capital Following Solid 4Q
- JPMorgan Downgrades Endo International plc (ENDP) to Neutral
Create E-mail Alert Related CategoriesAnalyst Comments, ETFs, Reuters
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!