BlackRock Investment Institute ‘modestly positive’ on risk assets for 2020

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FILE PHOTO: A sign for BlackRock Inc hangs above their building in New York U.S., July 16, 2018. REUTERS/Lucas Jackson/File Photo

LONDON (Reuters) – BlackRock Investment Institute said on Tuesday it was cautiously rotating into cyclical assets, Japanese equities and emerging markets.

“We are modestly positive on risk assets,” said Scott Thiel, chief fixed income strategist for BlackRock Investment Institute, citing as reasons a nudge higher in growth in the first half of 2020 and an improvement in the “mood music” around protectionism.

“Market returns will be consistent with late cycle dynamic,” he added.

BlackRock was turning neutral on U.S. equities, was modestly underweight European equities and underweight European government bonds, said the firm at a media briefing.

Reporting by Marc Jones; Writing by Tom Arnold; Editing by Karin Strohecker

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