BlackRock cuts U.S. equities to neutral, remains underweight Treasuries – Yahoo Finance

NEW YORK, July 7 (Reuters) – BlackRock, the world’s largest asset manager, said on Wednesday in its mid-year investment outlook that it was cutting U.S. equities to neutral, that it would remain underweight developed market government debt including Treasuries and that it is turning positive on European equities. 

  The shifts in strategy are driven in part by its view that inflation is rising in the medium term, BlackRock said. It expects higher bond yields due to rising inflation pressures rather than changes in monetary policy, which BlackRock said creates a positive environment for equities. (Reporting by Kate Duguid, Editing by Franklin Paul) 

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