Fund giant BlackRock 'warming up' to European assets

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The research arm of the world’s biggest fund manager said two factors would support Europe’s economy and financial markets in the coming months.

Success in restricting the spread of COVID-19 and signs that shopping and travel activity was rebounding meant: “we could see the pace of recovery in the second half outpacing other regions, including the United States”.

It said the new 750-billion-euro European recovery plan was a “crucial turning point” too and will, for the first time, create a jointly issued European ‘safe’ asset of a meaningful size.

“As a result we maintain our overweight in European peripheral government bonds and are considering an upgrade to European equities,” the BII’s top strategists said in a weekly report.

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