LONDON Reuters BlackRock trimmed its exposure to Chinese stocks and government bonds, and Asian fixed income more widely, to neutral from a slight overweight, citing a worsening macroeconomic outlook as well as geopolitics.
Chinas ties to Russia also have created a new geopolitical concern that requires more compensation for holding Chinese assets, we think, Jean Boivin, head of the BlackRock Investment Institute said in a weekly note to clients.
BlackRock also said it upgraded European government bonds to neutral with a view that market pricing of euro area interest rate hikes is too hawkish given the energy shock39;s hit to growth.
Boivin39;s team also said it saw value in investment grade credit, where annual coupon income was nearing 4 the highest in a decade.
The asset manager saw little chance of a perfect economic scenario of low inflation and growth humming along. Last weeks market rout shows investors are adjusting to this reality.
Reporting by Karin Strohecker; editing by Rodrigo Campos
Source Reuters