Saturday Feb 15, 2025
Friday, 26 August 2016 00:01 - - {{hitsCtrl.values.hits}}
NEW YORK (Reuters): BlackRock Inc said this week 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 US 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 August 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 US 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.
Discover Kapruka, the leading online shopping platform in Sri Lanka, where you can conveniently send Gifts and Flowers to your loved ones for any event including Valentine ’s Day. Explore a wide range of popular Shopping Categories on Kapruka, including Toys, Groceries, Electronics, Birthday Cakes, Fruits, Chocolates, Flower Bouquets, Clothing, Watches, Lingerie, Gift Sets and Jewellery. Also if you’re interested in selling with Kapruka, Partner Central by Kapruka is the best solution to start with. Moreover, through Kapruka Global Shop, you can also enjoy the convenience of purchasing products from renowned platforms like Amazon and eBay and have them delivered to Sri Lanka.
Discover Kapruka, the leading online shopping platform in Sri Lanka, where you can conveniently send Gifts and Flowers to your loved ones for any event including Valentine ’s Day. Explore a wide range of popular Shopping Categories on Kapruka, including Toys, Groceries, Electronics, Birthday Cakes, Fruits, Chocolates, Flower Bouquets, Clothing, Watches, Lingerie, Gift Sets and Jewellery. Also if you’re interested in selling with Kapruka, Partner Central by Kapruka is the best solution to start with. Moreover, through Kapruka Global Shop, you can also enjoy the convenience of purchasing products from renowned platforms like Amazon and eBay and have them delivered to Sri Lanka.