Blackrock’s research arm sees a ‘real and broad’ reboot in the global economy
A ‘real and broad’ reboot of the global economy is underway – with the United States ‘handing over’ to Europe and other developed markets, even as the delta variant of COVID-19 presents a challenge for emerging countries, according to the research arm of BlackRock Inc., the world’s largest fund manager.
who had around $ 9.5 trillion in assets under management in the second quarter, is widely followed due to its dominant role in financial markets. The opinions were published Monday in a weekly commentary by the BlackRock Investment Institute.
Company commentary comes in the form of a report showing record US job openings indefinite
for June helped raise Treasury yields and sent the 10-year rate TMUBMUSD10Y,
above 1.30%. Until recently, U.S. and global bond yields generally followed a steady downtrend, accompanied by flattening of yield curves that suggested investors expected global economic growth to slow down, with a moderation in the economy. long-term inflation, or both.
Read: Why investors should care about falling global bond yields and the flattening of the treasury bill curve
“The rebound in economic activity is real and is spreading,” wrote Jean Bolvin, Elga Bartsch, Wei Li and Nicholas Fawcett in the note. They said the reboot in global activity is causing a growth spurt, which will eventually settle into “an expansion around trend growth” and be followed by “an unusually wide range of potential outcomes,” they said. declared.
For now, the global restart scenario “supports our pro-risk stance and underweighting in government bonds, as we believe their low yields do not reflect the momentum of the restart,” the authors wrote. They also said they were tactically overweight European equities, while recently downgrading emerging market equities and debt to neutral.
The authors could not immediately be reached for comment.