On Tuesday, BlackRock’s Investment Institute stated, it was “warming up” to European assets following what it termed as an “impressive” performance by the Eurozone to tackle the Wuhan coronavirus.
The Investment Institute, the research arm of BlackRock, the world’s biggest fund manager, said it sees two factors supporting Europe’s economy and financial markets in the coming months. The first bring success in restricting the spread of the coronavirus and the second being it is seeing green shoots of economic activity in the shopping and travel sector. This rebound means, “we could see the pace of recovery in the second half outpacing other regions, including the United States”.
It sees 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,” said BlackRock’s Investment Institute’s top strategists in a weekly report.